Question 1

Both BioThink Inc. and GD Pharma Inc. have discovered similar vaccines to prevent cancer. While GD Pharma's vaccine sells at $100 per unit, BioThink sells its vaccine at $90 per unit. This price differentiation has mainly been attributed to the companies' capital decisions. While BioThink used its retained earnings to develop the vaccine, GD Pharma borrowed funds from banks to develop the vaccine. Thus, GD Pharma pays a higher interest on its capital, which makes it necessary to price its vaccine higher. Thus, the key driver for BioThink's competitive advantage is

Accepted Answer

A)   low-cost input factors.
B)   economies of scale.
C)   superior customer service.
D)   availability of complements.E) C) and D)
F) None of the above

Question 2

Which of the following drivers simultaneously increases value while lowering cost?

Accepted Answer

A)   economies of scale
B)   superior customer service
C)   availability of complements
D)   innovationE) B) and C)
F) A) and D)

Question 3

What does the success of business-level strategies depend on?

Accepted Answer

It is important to note that none of the...

Question 4

Nendry is the owner of a firm that produces sports drinks. Since there are a number of firms in the industry competing on cost, Nendry has decided to pursue a differentiation strategy. In this case, she should

Accepted Answer

A)   focus on adding unique features to her product that customers will value.
B)   concentrate on improving process technologies to achieve economies of scale.
C)   enforce strict budget controls at all levels of the organization.
D)   devote all resources to reducing the value gap.E) None of the above
F) All of the above

Question 5

The major value drivers that managers have at their disposal include product features, customer service, and complements.

Accepted Answer

A) True 
 B)False

Exam 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Which of the following drivers simultaneously increases value while lowering cost?

Correct Answer
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Correct Answer
verified

Nendry is the owner of a firm that produces sports drinks. Since there are a number of firms in the industry competing on cost, Nendry has decided to pursue a differentiation strategy. In this case, she should

Correct Answer
verified

The major value drivers that managers have at their disposal include product features, customer service, and complements.

Correct Answer
verified

What does the success of business-level strategies depend on?

Correct Answer
verified
It is important to note that none of the...
View Answer

Exam 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Which of the following drivers simultaneously increases value while lowering cost?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Nendry is the owner of a firm that produces sports drinks. Since there are a number of firms in the industry competing on cost, Nendry has decided to pursue a differentiation strategy. In this case, she should

Correct AnswerverifiedShow Answer

The major value drivers that managers have at their disposal include product features, customer service, and complements.

Correct AnswerverifiedShow Answer

What does the success of business-level strategies depend on?

Correct AnswerverifiedIt is important to note that none of the...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
It is important to note that none of the...
View Answer