If primary value-chain activities involve effective management of inbound logistics and support
activities include increased efforts in technology development, this is representative of which type
of competitive advantage?
differentiation
overall cost leadership
stuck-in-the-middle
differentiation focus
overall cost leadership
If a firm achieves above-average returns despite intense rivalry, it is likely to be using __________
strategy.
differentiation
cost leadership focus
differentiation focus
overall cost leadership
overall cost leadership
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,MAN test 2 MAN test 2 2/18/2026
If a company is using a cost leadership strategy, which of the following potential pitfalls is not a
characteristic of that strategy?
Too much focus on one value-chain activity can lead to greater loss.
Cost advantages erode when pricing information is readily available.
A lack of parity on differentiation is evident.
The strategy is not easily imitated.
The strategy is not easily imitated.
A profit pool can be defined as the total profits in an industry at all points along the industry ________
chain.
supply
market
seller
value
value
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Which of the following is not a reason that company competitive advantage can be eroded?
rapid change in technology
length of time a company is in business
globalization
actions by rivals from within and outside of the industry
length of time a company is in business
Atlas Door created its competitive advantages in the marketplace by doing all of the following
except
building just-in-time factories.
reducing the time to receive and process an order.
tightly controlling logistics so that it always shipped only fully complete orders.
not emphasizing a differentiation strategy.
not emphasizing a differentiation strategy.
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