Question 1

One of Porter's generic business strategies that involves controlling expenses and,in turn,lowering product prices targeted at a narrow range of markets segments is referred to as a __________ strategy.

Accepted Answer

A cost focus strategy involves focusing on controlling expenses and lowering product prices, which makes it a good fit for a narrow range of market segments. It is different from a cost leadership focus strategy, which seeks to become the lowest-cost producer in the industry as a whole. Differentiation focus, on the other hand, targets a narrow range of market segments with a unique product or service offering. The choice of profit enhancement is not a Porter's generic business strategy.

Question 2

A firm following a cost leadership strategy shown in Figure 22-3 above would be found in __________.

Accepted Answer

The firm following a cost leadership strategy is focused on reducing costs in order to offer products at a lower price than competitors. In Figure 22-3, the position of "D" is the most favorable for a cost leadership strategy because it has a low cost structure and can offer products at a lower price than competitors. "A" and "C" have higher costs and are not ideal for a cost leadership strategy.

Question 3

One 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 given strategy of focusing on reducing expenses and lowering product prices while targeting a broad array of market segments is referred to as the Cost Leadership strategy. This strategy aims to establish a competitive advantage by becoming the lowest-cost producer in the industry while maintaining a desired level of profitability.

Question 4

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 MOST LIKELY use when it launched its Internet parts website?

Accepted Answer

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

Question 5

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

Accepted Answer

A cost focus strategy involves controlling expenses and lowering product prices targeted at a narrow range of market segments. This strategy is often used by businesses that want to specialize in serving a specific customer group, such as budget-conscious consumers or small businesses. By focusing on a smaller market, the business can achieve greater cost efficiencies and offer lower prices than its competitors. A cost focus strategy does not require significant points of difference or the ability to charge a higher price.

Question 6

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

Accepted Answer

A differentiation focus strategy targets a narrow range of market segments with products that have significant points of difference. This allows the company to focus on the specific needs and preferences of those market segments and differentiate themselves from competitors. This strategy typically involves charging a higher price for the unique product features.

Question 7

A firm following a cost focus strategy shown in Figure 22-3 above would be found in __________.

Accepted Answer

The answer of A firm following a cost focus strategy...

Question 8

Hard 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 is Hard Candy MOST LIKELY using?

Accepted Answer

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

Question 9

Many 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 MOST LIKELY using a __________ strategy to attract this large market that encompasses many different segments.

Accepted Answer

Burger King is using a differentiation strategy by offering a veggie burger that appeals to health-conscious consumers who still want the taste of a traditional burger, thereby distinguishing their product from competitors.

Question 10

A firm following a differentiation focus strategy shown in Figure 22-3 above would be found in

Accepted Answer

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

Question 11

Office Max provides low product prices for products strictly classified as office supplies.In terms of Porter's generic business strategy,Office Max is MOST LIKELY using a __________ strategy.

Accepted Answer

Office Max is using a cost focus strategy as they are providing low prices for products strictly classified as office supplies, which suggests that they are focusing on providing low cost products.

Question 12

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

Accepted Answer

A cost leadership strategy focuses on reducing expenses to lower product prices, while targeting a broad range of market segments. This allows the company to have a competitive advantage by offering lower prices than its rivals. Option A is partially correct about lowering product prices, but it should target a broader range of market segments, not a narrow range. Option C and D are incorrect as they focus on having significant points of difference rather than cost reduction. Option E is also incorrect as it refers to a different strategy altogether.

Question 13

In 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,Ford made the Model T affordable for the average American family.What generic business strategy did 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 14

Delphi Automobile Systems manufacturers and sells satellite communications systems for automobiles that connects you and your car to 24-hour-a-day emergency service,directs you to a destination,and enables you to order a movie while on the road.Delphi Automobile Systems MOST LIKELY uses a(n)__________.

Accepted Answer

Delphi Automobile Systems' use of satellite communications systems for automobiles with features such as 24-hour emergency service, directing to a destination, and ordering a movie on the road indicates that they are likely using a differentiation strategy. They are offering unique and valuable features that set them apart from competitors and provide added value to customers.

Question 15

Porter's generic business strategies shown in Figure 22-3 above,"D" refers to a __________ strategy.

Accepted Answer

The answer of Porter's generic business strategies shown in Figure...

Question 16

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

Accepted Answer

A differentiation strategy involves creating unique product features that will allow the company to charge a higher price while targeting a broad array of market segments. By creating a unique and valuable product, the company can differentiate itself from its competitors and create a competitive advantage. This strategy often requires significant investment in research and development, marketing, and branding to create a strong brand image that conveys the uniqueness and value of the product.

Question 17

One of Porter's four generic business strategies requires that products to 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 unique features or significant points of difference.

Question 18

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

The given strategy is cost leadership, as it focuses on reducing expenses and lowering product prices while still targeting a wide range of market segments. Differentiation focus and cost focus both target specific market segments rather than a broad array of segments. Differentiation strategy focuses on providing unique products or services that are different from competitors, while supply focus is not included in Porter's four generic business strategies framework.

Question 19

A firm following a differentiation strategy shown in Figure 22-3 above would be found in __________.

Accepted Answer

A firm following a differentiation strategy typically seeks to offer unique products or services that stand out from competitors, which is often represented in strategic models as a position that is distinct from cost leadership or focus strategies.

Question 20

One of Porter's generic business strategies that require a product to have significant points of difference to charge a higher price while targeting a broad array of market segments is referred to as a __________.

Accepted Answer

The strategy described in the question is the differentiation strategy, which involves creating a unique product or service that is valued by customers and can command a higher price than competitors. This strategy targets a broad range of market segments, but relies on the product's unique features to differentiate it from competitors.

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