Question 1

According to Porter,companies that wish to dominate broad markets should operate using a ________ strategy.

Accepted Answer

According to Porter, broad markets should use cost leadership with a low cost and differentiation with a high cost.

Question 2

Your boss,Tom Repicci,has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a focused strategy?

Accepted Answer

A focused strategy targets a specific market niche. Sky Taxi, with its rent-by-the-hour personal plane service, is targeting a niche market, unlike the other airlines which serve broader markets.

Question 3

Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented.Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.What would Jennifer determine The Museum Company is using as its generic strategy?

Accepted Answer

The Museum Company competes using a narrow market and high cost focus.

Question 4

Which of the following offers an example of a company operating in a narrow,focused market operating as the low-cost provider?

Accepted Answer

Payless competes by offering a specific product (narrow market) at low prices. Their strategy is to be the low-cost provider of shoes.

Question 5

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents buyer power in the soft drink industry?

Accepted Answer

Buyer power in the soft drink industry is represented by Walmart.

Question 6

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

Accepted Answer

Porter has identified three generic business strategies for entering a new market: (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy.

Question 7

Which of the following demonstrates a company that has implemented a low-cost,broad-market strategy?

Accepted Answer

Walmart competes by offering a broad range of products at low prices. Its business strategy is to be the low-cost provider of goods for the cost-conscious consumer.

Question 8

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents a substitute product in the soft drink industry?

Accepted Answer

Vitamin water, fruit juice, or coffee are all substitute products to a soft drink.

Question 9

Which of the following is similar to focused strategy versus broad strategy?

Accepted Answer

Focused strategies versus broad strategies is synonymous to niche market versus large market.

Question 10

When applying Porter's three generic strategies,Tiffany & Co.has a competitive scope and cost strategy that is a __________.

Accepted Answer

Tiffany & Co. competes by offering a differentiated product, jewelry, at high prices. Its business strategy allows it to be a high-cost provider of premier designer jewelry to affluent consumers.

Question 11

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents rivalry in the soft drink industry?

Accepted Answer

The rivalry between Coke and Pepsi is famous in the soft drink industry.

Question 12

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents a threat of a new entrant in the soft drink industry?

Accepted Answer

Zevia Natural Diet Soda represents a new entrant in the soft drink industry.

Question 13

According to Porter's value chain analysis,which of the following provides customer support after the sale of goods and services?

Accepted Answer

The service activity within the primary value activities will provide customer support after the sale of goods and services.

Question 14

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents supplier power in the soft drink industry?

Accepted Answer

Supplier power in the soft drink industry is represented by Pepsi.

Question 15

Broad differentiation,broad cost leadership,and _________ are the three generic strategies identified by Porter.

Accepted Answer

The three strategies proposed by Porter are (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy.

Question 16

In the bookstore industry,some of today's businesses compete with different business strategies and cost strategies.Which of the following is using a broad market competitive scope along with a low cost strategy?

Accepted Answer

Amazon.com competes by offering a broad range of differentiated products at low prices.

Question 17

According to Porter's three generic strategies for entering a market,if you have a focused strategy what market should you target?

Accepted Answer

According to Porter's three generic strategies for entering a market, if you have a focused strategy you should target a narrow market, niche market, or a unique market.

Question 18

Your boss,Tom Repicci,has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a differentiation strategy?

Accepted Answer

British Airways, Singapore Airlines, and Virgin Atlantic all compete using differentiation strategies.

Question 19

If a business is following a focused strategy,then its competitive scope is ________.

Accepted Answer

When you have a market segment, your competitive scope should be a narrow market, and the cost strategy should be a focused strategy.

Question 20

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's Five Forces Model.Which of the following represents the threat of substitute products or services in the music industry?

Accepted Answer

Game systems like Wii and social networks offer alternatives or substitute products to purchasing music for a consumer.

Quiz 2: Identifying Competitive Advantages