Question 1

When Apple allowed developers of iPhone and iPad apps to write programs for both Apple and Android they demonstrated __________________.

Accepted Answer

By allowing developers to create apps for both Apple and Android platforms, Apple demonstrated strategic cooperation within the business ecosystem. This move helped attract more developers to the platform and expand the overall market for both Apple and Android products. It was a strategic decision that benefited both companies and their customers.

Question 2

When Walmart competes globally on the basis of "everyday low prices," it relies on which of Porter's generic strategies?

Accepted Answer

Walmart's strategy of offering "everyday low prices" is a clear indication of a cost leadership strategy, which is one of Porter's generic strategies. Walmart aims to be the lowest-cost producer in the industry, and by achieving this, it can sell its products at lower prices than its competitors while maintaining profitability.

Question 3

____ are the two key variables in Porter's generic competitive strategies model.

Accepted Answer

The two key variables in Porter's generic competitive strategies model are competitive advantage and competitive scope. Competitive advantage refers to how a company differentiates itself from competitors in order to gain an advantage in the market. Competitive scope refers to the range of products or services that the company offers and the markets it serves. Therefore, the best choice is E.

Question 4

According to the concept of business ecosystems, organizations need to be as good at ____ as they are at competing if they are to succeed.

Accepted Answer

The concept of business ecosystems emphasizes the importance of cooperation and collaboration among organizations within an industry in order to create a more successful and sustainable system. Therefore, organizations need to be as good at cooperating as they are at competing in order to thrive within a business ecosystem.

Question 5

Which of the following is a sources of competitive advantage for the commission-based Internet business model?

Accepted Answer

Problem-solving transactions provide a source of competitive advantage for the commission-based Internet business model by offering unique solutions that attract users and transactions, from which commissions can be earned.

Question 6

When Heather's bakery competes on the basis of "freshness" and "taste" of the baked goods, it relies on which of Porter's generic strategies?

Accepted Answer

Heather's bakery is relying on differentiation by focusing on the unique qualities of their baked goods, such as freshness and taste, to set themselves apart from competitors.

Question 7

Math Wizards is striving to gain a competitive edge in a five-state area by keeping costs as low as possible. It is adhering to which of Porter's generic competitive strategies?

Accepted Answer

The answer of Math Wizards is striving to gain a...

Question 8

If a public relations executive asked you to recommend one of Porter's generic competitive strategies that would allow his company to create brand loyalty among clients, which of these would you suggest?

Accepted Answer

Differentiation strategy focuses on creating a unique and superior product or service that sets a company apart from its competitors. By offering something unique, the company can create brand loyalty among clients who value the unique features and benefits the company provides. This strategy is especially relevant for companies that are operating in highly competitive markets where customers may lack brand loyalty.

Question 9

Terrence is the founder of small Internet start-up specializing in entertainment programming. Terrence would like to add value to the company by leveraging a strong brand name and providing high quality information to specialized markets. Which Internet business model would you recommend?

Accepted Answer

A subscription-based model would allow Terrence to provide high quality information to specialized markets while leveraging a strong brand name. This model would also provide a consistent and predictable revenue stream for the company.

Question 10

The Internet is not a fixed thing, rather it is_______________.

Accepted Answer

The Internet is constantly evolving and changing, with new technologies emerging all the time. It is not a fixed or static entity, but a complex and dynamic system.

Question 11

According to Porter , which of these is the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sales service?

Accepted Answer

Differentiation is the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sales service. This is one of the three generic strategies identified by Michael Porter for achieving competitive advantage in the market.

Question 12

All of the following are included in Porter's generic competitive strategies except

Accepted Answer

Market domination is not one of Porter's generic competitive strategies. The other four options - cost leadership, differentiation, cost focus, and focused differentiation - are all part of his framework.

Question 13

Managers pursuing the ____ strategy have an overriding concern for keeping costs and prices lower than those of competitors.

Accepted Answer

The strategy described is cost leadership, which involves focusing on keeping costs low to achieve a competitive advantage in pricing. Option A (differentiation) involves creating a unique product or service that stands out from competitors, while options B (economies of scale) and C (economies of scope) both involve leveraging efficiencies in production or operations to lower costs. Option D (cost focus) is similar to cost leadership but involves focusing on a specific market niche rather than the broader market.

Question 14

All of these are basic Internet business models except

Accepted Answer

All of the other options listed (commission-based, fee-for-service-based, mark-up-based, and advertising-based) are basic Internet business models. Word-of-mouth-based is not a traditional Internet business model, although it can certainly be a factor in the success of online businesses.

Question 15

Web sites need to satisfy all of these criteria except ____ when doing business at Internet speed.

Accepted Answer

While all the other criteria are essential for doing business at Internet speed, offering free Internet service is not necessary for running a successful website.

Question 16

The Mayo clinic is an example of the _________ strategy that involves achieving a competitive edge by delivering a superior product and/or service to a limited audience.

Accepted Answer

The focused differentiation strategy involves delivering a superior product or service to a limited audience, which is precisely what the Mayo Clinic does by providing specialized medical services to a specific and focused patient base.

Question 17

____________ helps explain why consumers are willing to pay more for branded products such as UnderArmour athletic gear, Apple iPhones, and Lexus motor vehicles.

Accepted Answer

Differentiation is the strategy of creating a unique product or service that sets a company apart from its competitors. Branded products are often associated with high quality, reliability, and status, which can justify a higher price point for consumers. The brand identity and reputation created through differentiation can lead to strong brand loyalty among consumers.

Question 18

A(n) ____-based Internet business model adds value by providing free or low-cost content to audiences that range from very broad to highly targeted.

Accepted Answer

The advertising-based Internet business model adds value by providing free or low-cost content to audiences while generating revenue from advertising. This business model allows websites to offer content for free while still making a profit through advertising revenue.

Question 19

Research on Porter's model indicates a(n) ____ relationship between long-term earnings growth and a good strategy/environment fit.

Accepted Answer

Research has shown that there is a positive relationship between long-term earnings growth and a good strategy/environment fit according to Porter's model. This means that companies that have a strong alignment between their strategy and the external environment are more likely to see growth over time.

Question 20

____ means that the Web site draws the same customer back again and again.

Accepted Answer

Stickiness refers to the ability of a website to keep users engaged and coming back for more. This is often measured by factors such as time spent on the site, number of pages visited, and repeat visits. Hits and clicks refer to the number of times a website is accessed, while cannibalism and glue are not relevant terms in this context.

Quiz 7: Strategic Management: Planning for Long-Term Success