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. Match. This is the broad version of the low-cost strategy because such companies try to appeal to a … 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. C)buyers are price sensitive and are attracted to brands with low switching costs. Focused cost leadership is the first of two focus strategies. This strategy requires a business to advertise that their products are the most affordable for the customers. A low-cost provider strategy works best when. 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. 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… Log in Sign up. ISDS 3115 Chapter 11. 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. 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. Focused Low Cost Strategy Presented by – MahakDhoot Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. A focused differentiation strategy requires offering unique features that fulfill the demands of a narrow market (Table 5.7 “Focused Differentiation”). Created by. More than 50 million students study for free with the Quizlet app each month. 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. 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. Focused Differentiation strategy • A focused differentiation strategy requires offering unique features that fulfill the demands of a narrow market. 85 terms. In order to be successful with a low-cost leadership strategy, company managers have to: B. perform value chain activities more cost-effectively than rivals and be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. A company that employs a best-cost provider strategy is vunerable to which of the following? a. Higher product value tends to go along with which of the following terms? vrainh2o. 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. When rivals offer virtually identical products, Low - cost providers need to be especially careful not to make the mistake of. Of value chain activities? 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. 58. Successful differentiation strategies allow companis to, Differentiation strategies can increase a company's profitability if, Increased sales numbers more than cover the costs of differentiation, Red bull and listerine employ a differentiation strategy contered on, The most systematic approach to achieving differentition is to focus on, Companies can create differentition by investing in human resource management activities that, A company that develops a strong relationship with its suppliers is more likely to have its supply need prioritized, When industry supply struggles to meet overall demand, Companies can create a differentiation-based advantage by incorporating intangible features such as, Signaling product value as differentiation strategy is especially improtant when, the nature of the differentiation is based on intangible features, To create competitive advantage for a company, a differentiation strategy must, Hotels differentiate their services by offering, In terms of differentition strategy, fast-paces technological change and quickly evolving product features can, A particular differentiation strategy has a better chance of succeeding when, There are few rival ompanies using the sam approach. Charging too high a price for the idfferentiation products, In terms of a company strategy based on differentiation, offering largely insignificant improvements in quality or service can have which of the following impacts on a comapny, Companies that create a focused, low cost strategy strive to secure a compettitive advantage by doing which of the following, Focused differentiation strategies can be successful if which of the following occur, Large companies often employ multibrand strategies to better compete iwth, Companies that employ a focused idfferentiaiton strategy, The potential for the preferences of a niche market to change can present a problem for companies that employ a, Focused low-cost strategies are common for producers of which following, Generic goods that imitate name-brand products, Comapnies that pursue a focused differentiation strategy are at risk for, A company that employs a focused differentiation strategy may experience intense competition if, Best cost provider strategies are intended to provide value-conscious buyers with, A quality product at a relatively low price, Best-cost providers differ from low-cost providors by, Offering attractive featers at a lower cost than competitors. A. the market is composed of distinctly different buyer groups who have different needs or use the product in different ways. A focused low-cost strategy can lead to attractive competitive advantage when. A focused differentiation strategy requires the business to offer unique features to a product or service, and it must fulfill the requirements of a niche or narrow market. a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment. View Set. B) buyers are looking for a budget-priced product. A differentiation strategy works best when: A. technological change is fast-paced and competition revolves around rapidly evolving product features. Create your own flashcards or choose from millions created by other students. Gravity. An example of how companies can revamp their value chain to reduce costs is to: A. have suppliers locate their plants close to companies' own facilities.B. Using information systems in a way that gives customers the lowest prices is the low-cost leadership strategy. PLAY. On Saturday, October 10th, we'll be doing some maintenance on Quizlet to keep things running smoothly. The objective of a competitive strategy is to: D. provide buyers superior value relative to the offerings of rival sellers in order to attain a competitive advantage. 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. 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. Advertising lower prices than their rivals. 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. Which of the followign is typical course of action for companies that pursue low-cost leadership? A strategy is quintessential about the future which there is uncertainty. involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors. Serving niche market customers at a lower cost than rivals. C) buyers are price sensitive and are attracted to brands with low switching costs. Test. B)delivering more value for lesser money than other competitors. A. a set of factors (analogous to cost drivers) that are particularly effective in having a strong differentiation effect. 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. 6. Each generic strategy has its risks, including the low-cost strategy. Which of the following companies are noted for their successful use of low-cost provider strategies? B)buyers are looking for a budget-priced product. The generic types of competitive strategies include: C. low-cost provider, broad differentiation, best-cost provider, focused low-cost, and focused differentiation strategies. Why Tesla Follows a Product Differentiation Strategy and Aldi one of Cost Leadership-And not the Other Way Around! A focused low-cost strategy can lead to attractive competitive advantage when A)buyers are looking for the best value at the best price. A second advantage of using a focus strategy is that firms often develop tremendous expertise about the goods and services that they offer. Published on February 13, 2018 February 13, 2018 • 68 Likes • 10 Comments Le low cost est-il une réponse valable et pérenne aux stratégies de la concurrence ? Broad differentiation strategies generally work best in market situations where: D. technological change is fast-paced and competition revolves around rapidly evolving product features. 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. By providing niche members with a top-of-the-line product at a premium price B. a. most rivals are trying to be best-cost providers, many sellers have wide product selection so as to appeal to as many different kinds of buyers as possible, and focused strategies are ineffective. A differentiation-based competitive advantage: E. often hinges on incorporating features that raise the performance of the product or lower the buyer's overall costs of using the company's product, or enhances buyer satisfaction in intangible or noneconomic ways, or delivers value to customers by differentiating on the basis of competencies and capabilities that rivals can't match. A low-cost provider seeks to sell its products at the lowest price it can, while still making a profit so that it can draw customers to the market. ISDS 3115 Chapter 11 . A focused low-cost strategy can lead to attractive competitive advantage when A) buyers are looking for the best value at the best price. Which of the following are good opportunities for a company to pursue a low-cost provider strategy? For example, other firms may be able to lower their costs as well. A broad differentiation strategy works best in situations where: A broad differentiation strategy generally produces the best results in situations where. Search. 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. Spell. The aim of marketer is to achieve effectiveness. Low cost, Differentiation and Focus are examples of Business strategies. 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. Focused Differentiation Strategy. 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 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. Of action for companies that create a focused low-cost strategy seeks to achieve advantage... 5.7 “ focused differentiation strategy concentrate their efforts on a particular geographic area attracted to brands low!: -focus its attention on customers from a particular geographic area employs a best-cost provider must do the following are. Leveraging its collection of competitively valuable resources and competencies is true c. focused low-cost strategy can to. 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