A focused differentiation strategy requires offering unique features that fulfill the demands of a narrow market (Table 5.7 “Focused Differentiation”). Created by. While there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another are: B. whether a company's target market is broad or narrow and whether the company is pursuing a low cost or differentiation strategy. Quizlet is the easiest way to study, practice and master what you’re learning. Of value chain activities? By providing niche members with a top-of-the-line product at a premium price B. Which of the following are good opportunities for a company to pursue a low-cost provider strategy? Which of the following companies are noted for their successful use of low-cost provider strategies? B. few rival firms are following a similar differentiation approach. A factor that has a strong influence on a company's costs is called, An effective use of cost drivers can be achieved by employing the following methods, A company with a value chain system that sells directly consumers is able to, Nucor Corporation eliminates many steps in the steel manufacturing process by using which of the following products. vrainh2o. Advertising lower prices than their rivals. Gravity. This is the broad version of the low-cost strategy because such companies try to appeal to a … The low cost strategy is adopted for the chosen focused low cost strategy or niche market where volume can create huge impact on the revenues. Whatever strategic approach is adopted by a company to deliver value, it nearly always requires: D. performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. Focused differentiation strategies can be successful if which of the following occur. Focused low-cost provider strategy B. Search. As with a focused low-cost strategy, narrow markets are defined in different ways in different settings. Striving to achieve lower overall costs than rivals on camparable products the attract a broad spectrum of buyers, usually by underpricing. Flashcards. Cost-efficient management of a company's overall value chain activities requires that management: A. ferret out cost-saving opportunities in every part of the value chain. The major difference between a low-cost provider strategy and a focused low-cost strategy is the: C. size of the buyer group to which a company is appealing. A company's ability to invest in a newm cost-saving technological breakthrough can be impeded by which of the following. ISDS 3115 Chapter 11. The risks of a focused strategy based on either low-cost or differentiation include the: B. potential for the preferences and needs of niche members to shift over time toward product attributes desired by buyers in the mainstream portion of the market. B)buyers are looking for a budget-priced product. Le low cost est-il une réponse valable et pérenne aux stratégies de la concurrence ? A) focused low cost B) differentiation C) better quality D) low-cost leadership Answer: C Diff: 1 Type: MC Skill: Recall 98) Michael Porter's generic strategies are known as strategic positions, which are _____ of several elements of a firm's strategy. A focused low-cost strategy seeks to achieve competitive advantage by A)outmatching competitors in offering niche members an absolute rock-bottom price. STUDY. BROWSE SIMILAR CONCEPTS. The essence of a broad differentiation strategy is to: E. offer unique product attributes in ways that are valuable and appealing and that buyers consider worth paying for. b. focused differentiation c. focused low-cost d. broad differentiation. The strategy is the determinations of objectives and the long-term goals, and the adaptation of actions and the allocation of resources necessary for carrying out this goals-chandler. Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ? Write. A. diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products. Serving niche market customers at a lower cost than rivals. A low-cost provider strategy can defeat a differentiation strategy when: E. customers are basically satisfied and don't think extra attributes are worth a higher price features. Focused Low Cost Strategy Presented by – MahakDhoot Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 3/25/2018 GBA 490 Chapter 5 Flashcards | Quizlet 51/59 chain being used to achieve a low-cost competitive advantage E. The number of upscale attributes incorporated into the product offering A focused differentiation strategy aims at securing competitive advantage A. ISDS 3115 Chapter 11 . A focused cost leadership strategy requires B) buyers are looking for a budget-priced product. A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when: C. the offerings of rival firms are essentially identical, standardized, commodity-like products. Perceived value and signalling value are often an important part of a successful differentiation strategy because: B. buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. A differentiation strategy works best when: A. technological change is fast-paced and competition revolves around rapidly evolving product features. Each generic strategy has its risks, including the low-cost strategy. 85 terms. Why Tesla Follows a Product Differentiation Strategy and Aldi one of Cost Leadership-And not the Other Way Around! Successful broad differentiation allows a firm to: D. command a premium price for its product, and/or increase unit sales, and/or gain buyer loyalty to its brand. This strategy is effective when the competition is there but competitors are not strong or a small or very specific segment of customers … How valuable a low-cost leader's cost advantage is depends on: A. whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs. E. a strategy that is well matched to a company's internal situation; underpinned by an appropriate set of resources, know-how, and competitive capabilities; and difficult for rivals to match. Which of the following regarding its strategy is true? The major difference between a low-cost provider strategy and a focused low-cost strategy is the: C. size of the buyer group to which a company is appealing. Match. A firm pursuing a best-cost provider strategy: D. seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price. Create your own flashcards or choose from millions created by other students. A focused low-cost strategy can lead to attractive competitive advantage when. This strategy is targeted to those via so desire to have unique products at a low cost. Offer consumers a more attractive value proposition, Companies that pursue a focused strategy must have the resources to, Which of the following are used to assist in reducing production costs for a cost-advantage strategy, Which of the following are types of competitive strategies, Attempts to use low-cost advantage to attack rival companies with lower product prices can result in. A focused low-cost strategy seeks to achieve competitive advantage by: E. serving buyers in a narrow piece of the total market (target market niche) at a lower cost and lower price than rivals. A focused differentiation strategy aims at securing competitive advantage by: C. offering a product carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers. Opportunities to differentiate a company's product offering: C. can exist in activities all along an industry's value chain. Les choix stratégiques imposent une compréhension fine des impacts des options retenues. A focused low-cost strategy can lead to attractive competitive advantage when A)buyers are looking for the best value at the best price. B)delivering more value for lesser money than other competitors. Le positionnement prix vers le bas apporte des réponses somme toute efficaces à court terme, mais peut engendrer de graves difficultés à plus long terme. C)buyers are price sensitive and are attracted to brands with low switching costs. michaela_ealey1. involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors. Low cost, Differentiation and Focus are examples of Business strategies. Create. A strategy is quintessential about the future which there is uncertainty. Focused Differentiation Strategy. A) lists B) configurations C) … Upgrade to remove ads. Companies pursue closer coordination and collaboration with channel suppliers to better address customer needs in order to: C. enhance differentiation through the value chain system. Whether a broad differentiation strategy ends up enhancing a company's profitability depends mainly on whether: C. most buyers accept the customer value proposition as unique and the product can produce sufficient unit sales to cover the costs of achieving the differentiation. A focused strategy based on low cost aims at securing a competitive advantage by serving buyers in the target market niche at a lower cost and lower price than those of rival competitors. With offering lower prices than competitors, a business can create demand for their products. • Some firms using a focused differentiation strategy concentrate their efforts on a particular sales channel, such as selling over the Internet only. A focused low-cost strategy can lead to attractive competitive advantage when A) buyers are looking for the best value at the best price. Being the overall low-cost provider in an industry has the attractive advantage of: A low-cost leadership strategy becomes competitively powerful when: C. price competition among rivals is absent. A broad differentiation strategy improves profitability when: D. the higher price the product commands exceeds the added costs of achieving the differentiation. Strategy is all about planning done for the next day or future and is expected to get the best results out of the strategy, it is important for us to cope up for the uncertain tomorr… Businesses looking to build a broad or focused differentiation strategy will need to produce or design extremely unique or distinctive products or services that create increased value for the consumer. B. getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies. 58. B. the potential for the preferences and needs of niche members to shift over time toward product attributes desired by buyers in the mainstream portion of the market. A focused low-cost strategy can lead to attractive competitive advantage when. 3/25/2018 GBA 490 Chapter 5 Flashcards | Quizlet 59/59 competitive strategy D. A best-cost provider because it has the biggest potential for generating the largest market share E. A focused low-cost or focused differentiation strategy because they are more insulated from competitive pressures The risks of a focused strategy based on either low-cost or differentiation include: A. the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. Browse. D)a market is emerging and demand in the target market niche is growing rapidly and is served by industry-wide competitors. A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by: B. maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold. 28. The company's heavy investment in its current operating system, Improving customer service or adding extra services are ways to manage the value chain to create product, Coordinating with retailers allows a company to do which of the following, Companies can reduce costs associated with a value chain system by, To enhance customer value and revamp the value chain system, companies can coordinate with partners, such as, Companies can provide superior customer value by creating user features that, A differentiation strategy might fail in which of the following situations, When products and services can be quickly imitated, Companies that create a focused,low cost stretegy strive to secure a competitive advantage by doing which of the following, Serving niche market customers at a lower cost than rivals. Best-cost provider strategies are those that: A. are a hybrid of low-cost provider and differentiation strategies that aim at providing desired attributes while beating rivals on price. 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