Question 1

Defender businesses are businesses which pay more attention to the development of new products.

Accepted Answer

Defender businesses typically focus on improving efficiency and protecting their current market share rather than on the development of new products.

Question 2

Analyzer businesses are often in industries that are still growing or experiencing technological changes.

Accepted Answer

This is true. Analyzer businesses often operate in industries such as technology, healthcare, and finance, which are still growing and evolving with new technologies and processes. Being able to stay up-to-date and adapt to changes is crucial for success in these industries.

Question 3

Business strategies are primarily concerned with identifying viable business opportunities in the market.

Accepted Answer

Business strategies encompass a broader scope, including setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. Identifying viable business opportunities is just one aspect of business strategy.

Question 4

All not-for-profit service organizations are concerned with producing and marketing a service as an adjunct to a physical product rather than marketing a service as their primary offering.

Accepted Answer

Not-for-profit service organizations can and do market services as their primary offering. Examples include charities, foundations, and community organizations that provide services such as healthcare, education, and social services.

Question 5

When examined on a country-by-country basis,the same business unit might be viewed as pursuing different competitive strategies in different countries.

Accepted Answer

This statement is true because different countries have different markets, cultures, and environments, which may require different competitive strategies to succeed. For example, a company may focus on price competition in a price-sensitive market like India, while emphasizing quality and innovation in a more affluent market like the United States.

Question 6

Services can be experienced in advance of the sale,while goods cannot be experienced,or tested,before purchase.

Accepted Answer

This statement is incorrect. Goods can be experienced and tested before purchase through samples, demos, displays, and product reviews.

Question 7

Most start-ups succeed by competing as a "me-too" competitor in a well-established and highly competitive product-market.

Accepted Answer

Most successful start-ups differentiate themselves and bring a unique value proposition to the market. While they may enter an established market, they often find a way to carve out a niche and stand out from their competitors.

Question 8

Analyzer businesses usually operate in broad and rapidly changing domains where neither the technology nor customer segments are well established.

Accepted Answer

Analyzer businesses typically operate in more stable environments where they can analyze trends and make strategic decisions based on established customer segments and technologies, rather than in rapidly changing domains.

Question 9

In an SBU the competitive strategies should be tailored to their unique resources and competencies and aimed at securing a sustainable advantage over existing or potential competitors.

Accepted Answer

This statement is true. An SBU (Strategic Business Unit) should develop competitive strategies that take into account their unique resources and competencies in order to establish a sustainable advantage over competitors. This may involve reducing costs, investing in marketing or R&D, innovating products or services, or differentiating themselves in the market. By doing so, they can stay ahead of the competition and improve their position in the marketplace.

Question 10

Michael Porter distinguishes three strategies that businesses pursue to gain and maintain competitive advantages in their various product-markets: (1)overall cost leadership;(2)differentiation;and (3)focus.

Accepted Answer

This statement accurately represents Michael Porter's three generic strategies for businesses.

Question 11

Reactors are businesses that concentrate only on maintaining their positions in established product-markets.

Accepted Answer

Reactors do not have a consistent strategy for maintaining their positions in established product-markets; instead, they react to environmental changes and make adjustments as necessary without a clear, long-term strategy.

Question 12

Most businesses compete in a reasonably consistent way across all of their product-markets,whether their domain is broad or narrow.

Accepted Answer

Most businesses strive to maintain consistency in their competitive strategies across different product-markets in order to build a brand image, establish competitive advantage, and maximize their returns on investment. This approach helps to streamline business processes, optimize resource allocation, and create a cohesive corporate identity. However, there may be some variations in the competitive approaches based on the unique characteristics of each product-market, such as the level of competition, customer preferences, regulatory environment, technological advancements, and market trends, among others.

Question 13

Most SBUs simultaneously pursue different competitive strategies across all product-markets in which they compete.

Accepted Answer

Most SBUs (Strategic Business Units) typically focus on a specific competitive strategy (cost leadership, differentiation, or focus) to target their market effectively, rather than pursuing different strategies across all product-markets.

Question 14

One possible outcome of changes due to the evolution of the Internet is that it will be hard for firms to differentiate themselves on the basis of low price.

Accepted Answer

The evolution of the Internet has actually made it easier for firms to differentiate themselves on the basis of low price. With the increased transparency of prices and the ease of comparing prices online, firms are able to compete on price more easily than ever before. However, this increased competition on price may also lead to a more commoditized market, where firms struggle to differentiate themselves on other factors such as quality or customer service.

Question 15

Evidence suggests that a substantial portion of businesses fall into the defender category.

Accepted Answer

The answer of Evidence suggests that a substantial portion of...

Question 16

A business unit's core competencies and resources,together with the customer and competitive characteristics of its industry,determine the viability of any particular competitive strategy.

Accepted Answer

A business unit's core competencies and resources, along with external factors such as customers and competitors, are crucial in determining the success or failure of a competitive strategy.

Question 17

In smaller single-business firms the distinction between business-level competitive strategy and marketing strategy tends to blur and the two strategies blend into one.

Accepted Answer

In smaller single-business firms, the resources and responsibilities for both business-level competitive strategy and marketing strategy often overlap and are handled by the same individuals or departments. Therefore, the distinction between the two strategies may not be as clear as in larger organizations where there are dedicated teams for each function.

Question 18

Defender businesses tend to operate in relatively well-defined,narrow,and stable domains where both the product technology and the customer segments are mature.

Accepted Answer

Defender businesses, also known as incumbent firms, typically operate in established markets where there is little room for disruptive innovation. They focus on improving existing products and serving loyal customer segments, rather than exploring new opportunities. This makes their domain well-defined and stable, with mature product technology and established customer segments.

Question 19

The internet will make it easier for firms,both manufacturers and retailers,to customize their offerings and personalize their relationships with their customers.

Accepted Answer

With the internet, firms can use data analysis to better understand their customers' preferences and behavior, thus allowing them to tailor their products or services to meet individual needs. This leads to personalized relationships with customers, which can improve customer loyalty and satisfaction.

Question 20

There is little need for a prospector business to consider how it will compete in the new product-markets it develops because it will face little or no competition-at least not until those markets become established.

Accepted Answer

A prospector business is constantly developing new products and markets, so it is unlikely to face much competition in the early stages.

Quiz 9: Business Strategies: a Foundation for Marketing Program Decisions