Question 1

Several analysts propose that as a result of the internet,pursuing a strategy focused on quality differentiation will become the most viable option for companies seeking competitive advantage.

Accepted Answer

On the contrary, the internet is widely believed to force more and more companies into low-cost strategies, as consumers now have the means of quickly comparing prices between firms.

Question 2

Explain the appropriate conditions for a prospector strategy.

Accepted Answer

The answer of Explain the appropriate conditions for a prospector...

Question 3

Michael Porter describes firms that lack a distinctive strategy as being 'stuck on the outside'.

Accepted Answer

Michael Porter distinguishes three strategies—or competitive positions—that businesses pursue to gain and maintain competitive advantages in their various product markets: (1) overall cost leadership; (2) differentiation—building customer perceptions of superior product quality, design or service; and (3) focus. Firms lacking a purposeful distinctive strategy are potentially likely to become ‘stuck in the middle'.

Question 4

A business's competitive strategy and the strategic marketing programs of its product or service offerings are independent of one another.

Accepted Answer

When there is a good fit between a business's competitive strategy and the strategic marketing programs of its various product or service offerings, the business will achieve better results in terms of sales growth, market share and profitability than when the two levels of strategy are inconsistent with one another.

Question 5

The internet will make it easier for firms to customise their offerings and personalise their relationships with their customers.

Accepted Answer

The internet will make it easier for firms to customise their goods and services by offering products with unique benefits that are meaningful to consumer market segments whilst simultaneously personalising their customer relationships through differentiated offerings that command a premium price.

Question 6

A marketing manager has an idea for an innovative new product with huge market potential but in a different industry segment requiring a prospector strategy.However,since this strategy conflicts with the low-cost defender strategy currently deployed by the manager's strategic business unit,the manager's best option is to not proceed with developing the new product.

Accepted Answer

If a business unit is focused on a single product category or technological domain the ideal solution might be for the whole SBU to change its strategy in response to shifting industry circumstances.

Question 7

What are the characteristics of strategic business units? Identify the dimensions that define the scope and mission of individual SBUs in a firm.

Accepted Answer

The answer of What are the characteristics of strategic business...

Question 8

The Miles and Snow combined typology of business-level competitive strategies is universal in that it can be applied to various types of firms,be they small or large firms; services only firms or firms that compete in global markets.

Accepted Answer

Not only can the Miles and Snow combined typology of business-level competitive strategies be applied across firms and businesses of varying sizes and resource capacities and capabilities, but the model is equally relevant regarding whether a firm competes in local, state, national or global markets.

Question 9

Emirates Airline has been classified as a differentiated analyser because:
A)It offers a high level of customer service while charging a price premium.
B)It has differentiated its service offering to include hotels and resorts around the world.
C)It pursues both established and new markets.
D)It is consistently at the forefront in opening new destinations while closing down old ones.

Accepted Answer

Emirates Airline is classified as a differentiated analyser because it pursues both established and new markets, balancing between maintaining its current market presence and exploring new opportunities.

Question 10

Business strategies are primarily concerned with allocating resources across functional activities and product markets to give the unit a sustainable advantage over its competitors.

Accepted Answer

The maintenance of a business unit's strategic competitive advantage not only depends on effective resource and core competency allocation but also the customer and competitive characteristics of its industry.

Question 11

Firms pursuing a reactor strategy usually can still be successful and achieve competitive advantage in the short term.

Accepted Answer

Reactors can be successful in the short term by rigging solutions to problems. But what characterises reactors is inconsistent strategy through failure to invest in one stable business approach.

Question 12

A strategic issue for SBUs is how their strategy influences the amount of resources committed to marketing and ultimately the budget available.

Accepted Answer

This is because varying functions within the business unit are more important under different strategies and thus receive different proportions of the SBU's total resources.

Quiz 3: Business Strategies and Their Marketing Implications

Several analysts propose that as a result of the internet,pursuing a strategy focused on quality differentiation will become the most viable option for companies seeking competitive advantage.