Question 1

Volkswagen achieved spectacular success in the late 1990s by targeting the "nostalgia" segment,35- to 54-year-old baby boomers,with its technology-laden New Beetle.Which of Porter's generic business strategies did Volkswagen use to launch the New Beetle?

Accepted Answer

Volkswagen targeted a specific segment, the nostalgia segment, with its New Beetle model that was technology-laden and had a unique design. This aligns with Porter's differentiation focus strategy, which focuses on targeting a specific niche market segment and differentiating products or services to meet the needs of that particular segment.

Question 2

of Porter's generic business strategies that focuses on reducing expenses and,in turn,lowers product prices while targeting a broad array of market segments,is referred to as a

Accepted Answer

The strategy described in the question is the cost leadership strategy. This strategy focuses on reducing costs in all areas of the business in order to offer products at a lower price than competitors. It targets a broad market segment by appealing to price-sensitive consumers.

Question 3

of Porter's generic business strategies requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.This is referred to as a __________.

Accepted Answer

Porter's differentiation strategy requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. This strategy aims to create a unique and premium offering compared to competitors, which can justify the higher price point.

Question 4

Seeking opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies is referred to as __________.

Accepted Answer

Synergy analysis involves finding the optimal balance between different business functions, such as marketing and R&D-manufacturing, to achieve efficiencies and maximize overall performance.

Question 5

Delphi Automobile Systems manufacturers and sells satellite communications systems for automobiles that connect you and your car to 24-hour-a-day emergency service,direct you to a destination,and enable you to order a movie while on the road.Because of the unique services it provides,it charges a higher price than its competitors.Delphi Automobile Systems is using a(n)__________.

Accepted Answer

Delphi Automobile Systems is using a differentiation strategy by providing unique services that its competitors do not offer and charging a higher price for it.

Question 6

cost leadership strategy refers to one of Porter's generic business strategies that

Accepted Answer

Cost leadership strategy involves reducing expenses in order to lower product prices. This strategy is generally targeted at a broad array of market segments rather than a narrow range. Option B accurately describes this strategy. Option A refers to a niche cost leadership strategy, while options C, D, and E refer to other generic strategies.

Question 7

Candy is a cosmetics company that markets the Palm Palette-all the make-up a "girl-on-the-go" needs without a cumbersome make-up bag.It comes in three shades-glam,funky,and girlies.Hard Candy targets women who are twenty somethings.Which one of Porter's generic business strategies does Hard Candy use?

Accepted Answer

Hard Candy uses a differentiation focus strategy by targeting a specific market segment (women in their twenties) with a unique product offering (the Palm Palette in three distinct shades).

Question 8

Synergy analysis refers to

Accepted Answer

Key term definition-synergy analysis.

Question 9

firm following a differentiation focus strategy shown in Figure 22-4 above would be found in

Accepted Answer

The answer of firm following a differentiation focus strategy shown...

Question 10

differentiation focus strategy refers to one of Porter's generic business strategies that

Accepted Answer

The differentiation focus strategy is all about targeting a narrow range of market segments with products that have significant points of difference. This allows the business to meet the unique needs and preferences of these customers, who are often willing to pay a premium for such products. By focusing on a small set of segments, the business can allocate its resources more efficiently and effectively, while still achieving high profitability. Thus, options A, B, D, and E are incorrect as they do not match the characteristics of differentiation focus strategy.

Question 11

people are concerned about "eating healthy," but many of these same people still grab lunch at fast food restaurants because the restaurants are convenient and they like cheeseburgers.Burger King has created a veggie burger that "tastes like the real thing without all the fat." Burger King is using a __________ strategy to attract this large market that encompasses many different segments.

Accepted Answer

Burger King is using a differentiation strategy by creating a product that stands out from traditional fast food options and appeals to health-conscious consumers who still want the experience and taste of a burger. This strategy allows Burger King to attract a large market with varying segments, as it offers a unique product that meets the needs of those seeking healthier options.

Question 12

Office Max provides low product prices for office supplies.In terms of Porter's generic business strategy,Office Max uses a __________ strategy.

Accepted Answer

Office Max's focus on offering low prices for office supplies aligns with a cost focus strategy, which aims to provide lower prices than competitors while still maintaining profitability. This strategy is different from differentiation, which focuses on offering unique or superior products or services, and differentiation focus, which combines a focus on unique features with a narrower target market. Office Max's strategy does not necessarily indicate revenue leadership or profit enhancement, as it is primarily focused on offering low prices rather than maximizing revenue or profits.

Question 13

of Porter's four generic business strategies requires that products have significant points of difference to target one or only a few market segments is referred to as a __________ strategy.

Accepted Answer

The differentiation focus strategy targets a specific market segment with products that have significant points of difference, distinguishing them from competitors.

Question 14

the early 1900s,Henry Ford revolutionized the automobile industry by developing production lines and mass-producing the Ford Model T automobile.By heavily reducing production costs,Henry Ford made the Model T affordable for the average American family.What generic business strategy did Henry Ford use to gain a competitive advantage in the automobile market?

Accepted Answer

Henry Ford used a cost leadership strategy to gain a competitive advantage in the automobile market by heavily reducing production costs and making the Model T affordable for the average American family.

Question 15

According to Porter's four generic business strategies framework,a __________ strategy focuses on reducing expenses and,in turn,lowers product prices,while targeting a broad array of market segments.

Accepted Answer

A cost leadership strategy focuses on reducing expenses and achieving lower product prices in order to target a broad range of market segments. It involves maximizing operational efficiency and minimizing costs throughout the entire value chain, in order to offer products at a lower price than competitors while maintaining acceptable quality and features. This can result in higher sales volume and increased market share.

Question 16

of Porter's generic business strategies involves controlling expenses and lowering product prices targeted at a narrow range of market segments.This is referred to as a __________ strategy.

Accepted Answer

This strategy is known as a cost focus strategy because it involves focusing on controlling expenses and lowering product prices, which means that the company is focused on a narrow range of market segments to keep costs low. This differs from a cost leadership strategy, which aims to offer the lowest prices in the overall market rather than just a specific segment. Similarly, differentiation strategies aim to offer unique products or services in a broader market, while profit enhancement is a general goal that can be achieved through various strategies.

Question 17

cost focus strategy refers to one of Porter's generic business strategies that

Accepted Answer

Cost focus strategy involves controlling expenses and lowering product prices targeted at a narrow range of market segments. This strategy is most effective for businesses that can meet the specific needs of a small group of customers at a lower cost than competitors targeting a broader market. By targeting a narrow range of market segments, businesses can keep costs low while still providing high-quality products that meet the specific needs of their customers. Therefore, option D is the most appropriate choice.

Question 18

increased customer value achieved through performing marketing functions more efficiently is referred to as __________.

Accepted Answer

Synergy refers to the increased effectiveness and efficiency achieved when different elements of a business work together, leading to greater customer value.

Question 19

differentiation strategy refers to one of Porter's generic business strategies that

Accepted Answer

Differentiation strategy involves creating products with unique attributes that allow a company to charge higher prices, targeting a broad range of market segments.

Question 20

Hyundai Motor America (HMA)became the first automaker to offer consumers an Internet parts ordering system.The system was targeted only to current Hyundai owners and gave Hyundai the ability to collect a vast amount of customer data about people who buy its cars.Which of Porter's generic business strategies did Hyundai use when it launched its Internet parts website?

Accepted Answer

The answer of Hyundai Motor America (HMA)became the first automaker...

Quiz 22: Pulling It All Together: The Strategic Marketing Process