Self Test Questions

1
Self Test Questions

• Which barrier to entry is based on high
  production volumes that result in low overall
  costs compared to competitors
• switching costs
• supplier power
• economies of scale
• buyer power
• government policy

2
Self Test Questions

• When a firm matches its distinctive competences
  to factors critical to industry success, it
  achieves
• parity in its industry
• a market foundation
• competitive advantage
• industrial alliance

3
Self Test Questions

• Which of the following is one of the generic
  strategies for competitive advantage identified
  by Michael Porter and discussed in your text
• market penetration
• product diversification
• market segmentation
• product differentiation
• product development

4
Self Test Questions

• Consumers pay a premium to an iPod digital music
  player from Apple Computer. The iPod is
  characterized by distinctive styling and superior
  ease of use Apple currently commands about 80
  percent of the market for digital music players.
  Which of Porters generic strategies best
  describes Apples approach with its iPod
• cost leadership
• differentiation
• cost focus
• focused differentiation

5
Self Test Questions

• Iridium Satellite LLC offers satellite Internet
  service with global coverage to customers who
  operate in remote areas not served by other
  connections. Which generic strategy does this
  illustrate
• cost leadership
• differentiation
• cost focus
• focused differentiation