BSG Exam Two8
1. The two biggest factors that distinguish one competitive strategy from another boil down to -
ANSWERS-Whether a company's market target is broad or narrow and whether the company is
pursuing a competitive advantage linked to low costs or differentiation
2. Which of the following is not one of the five generic competitive strategy options? -
ANSWERS-A superior customer service strategy
The 5 generic ones are: best-cost provider, focused differentiation, low-cost provider, broad
differentiation
3. A low-cost provider's basis for competitive advantage is - ANSWERS-Lower overall costs than
rivals—but not necessarily the absolutely lowest possible cost because a product offering that is
too frills-free can undermine its attractiveness to buyers despite being cheaper priced
4. The two major avenues for achieving a cost advantage over rivals include - ANSWERS-
Revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or
performing value chain activities more cost-effective than rivals
5. Which of the following is NOT one of the keys to being a successful low-cost provider? -
ANSWERS-Being greedy and trying to charge too high a price
6. The essence of a broad differentiation strategy is to - ANSWERS-Offer unique product
attributes that a wide range of buyers find appealing and worth paying for
7. Which one of the following is not among the options or possibilities for managing value chain
activities in ways that create desirable differentiating attributes, thereby enhancing the value
delivered to customers and better differentiating the company's product/service offering from
, rivals' offerings? - ANSWERS-Striving to ensure a corporate diversity policy is introduced with
effective controls
Eliminate product features that might have market appeal, but excessively increase production
costs
Shifting to the use of technologies and/or information systems that bypass the need to perform
certain value chain activities
8. Broad differentiation strategies tend to work best in market circumstances where - ANSWERS-
There are many ways to differentiate the product or service that have value to buyers
9. What sets focused (or market niche) strategies apart from low-cost leadership and broad
differentiation strategies is - ANSWERS-their concentrated attention on a narrow piece of the
overall market.
10. A company achieves best-cost provider status by - ANSWERS-Using its resources and
capabilities to incorporate attractive upscale attributes at a lower cost than those rivals with
comparable upscale product offerings
11. The target market of a best-cost provider is - ANSWERS-Value-conscious buyers
12. A company's menu of strategic choices to supplement its decision to employ one of the five
generic competitive strategies does NOT include - ANSWERS-whether to employ a preemptive
strike type of green ocean strategy.
13. A blue ocean type of offensive strategy - ANSWERS-Involves abandoning efforts to beat out
competitors in existing markets and, instead, inventing a new industry or distinctive market
segment that renders existing competitors largely irrelevant and allows a company to create and
capture altogether new demand
1. The two biggest factors that distinguish one competitive strategy from another boil down to -
ANSWERS-Whether a company's market target is broad or narrow and whether the company is
pursuing a competitive advantage linked to low costs or differentiation
2. Which of the following is not one of the five generic competitive strategy options? -
ANSWERS-A superior customer service strategy
The 5 generic ones are: best-cost provider, focused differentiation, low-cost provider, broad
differentiation
3. A low-cost provider's basis for competitive advantage is - ANSWERS-Lower overall costs than
rivals—but not necessarily the absolutely lowest possible cost because a product offering that is
too frills-free can undermine its attractiveness to buyers despite being cheaper priced
4. The two major avenues for achieving a cost advantage over rivals include - ANSWERS-
Revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or
performing value chain activities more cost-effective than rivals
5. Which of the following is NOT one of the keys to being a successful low-cost provider? -
ANSWERS-Being greedy and trying to charge too high a price
6. The essence of a broad differentiation strategy is to - ANSWERS-Offer unique product
attributes that a wide range of buyers find appealing and worth paying for
7. Which one of the following is not among the options or possibilities for managing value chain
activities in ways that create desirable differentiating attributes, thereby enhancing the value
delivered to customers and better differentiating the company's product/service offering from
, rivals' offerings? - ANSWERS-Striving to ensure a corporate diversity policy is introduced with
effective controls
Eliminate product features that might have market appeal, but excessively increase production
costs
Shifting to the use of technologies and/or information systems that bypass the need to perform
certain value chain activities
8. Broad differentiation strategies tend to work best in market circumstances where - ANSWERS-
There are many ways to differentiate the product or service that have value to buyers
9. What sets focused (or market niche) strategies apart from low-cost leadership and broad
differentiation strategies is - ANSWERS-their concentrated attention on a narrow piece of the
overall market.
10. A company achieves best-cost provider status by - ANSWERS-Using its resources and
capabilities to incorporate attractive upscale attributes at a lower cost than those rivals with
comparable upscale product offerings
11. The target market of a best-cost provider is - ANSWERS-Value-conscious buyers
12. A company's menu of strategic choices to supplement its decision to employ one of the five
generic competitive strategies does NOT include - ANSWERS-whether to employ a preemptive
strike type of green ocean strategy.
13. A blue ocean type of offensive strategy - ANSWERS-Involves abandoning efforts to beat out
competitors in existing markets and, instead, inventing a new industry or distinctive market
segment that renders existing competitors largely irrelevant and allows a company to create and
capture altogether new demand
