Question

Differentiation strategies are successful in addressing the competitive force of the bargaining power of suppliers because:

a. the company is operating at such high volumes that it can leverage its buying position to receive lower prices.

b. they prevent new companies from entering into the industry through economies of scale.

c. brand loyalty is a byproduct of this strategy, leading customers to choose the company's product over its rivals' products.

d. the higher margins of the firm can reduce the influence of increases in supplier costs. Which of the following statements about tangible resources is true? a. Compared to intangible resources, tangible resources are a superior source of capabilities and, subsequently, core competencies. b. Firms prefer to rely on them rather than intangible resources as the foundation for their capabilities. c. The value of tangible resources is constrained because they are hard to leverage. d. Intellectual capital is the most important tangible resource for today's leaders to develop. Which of the following represents a risk for companies pursuing a differentiation strategy? a. Competitors' imitation of a product at a lower price causing customers to purchase their product b. Failing to meet customers' minimal level of acceptable service c. Competitors' imitation of the value chain activities that make up the company's strategy d. Competitors' innovations resulting in their ability to drive costs lower A capability meets the criteria of being valuable when: a. it requires an investment of half of the company's financial assets. b. it is possessed by only the top tier of companies in the sector. c. it helps a firm exploit opportunities in its external environment. d. its causes and uses are unclear. A construction company is pursuing a focused differentiation strategy, and after reviewing its core competencies, the leaders have decided to specialize in hospital construction. Which of the following is an example of how that strategy is addressing the bargaining power of buyers (customers)? a. The company accepts a lower profit margin rather than raise prices after its supplier of medical regulators raises prices. b. The company participates in competitive bidding processes, and despite often submitting a higher bid than competitors, it is awarded the job based on its expertise. c. In a year where only a few hospitals are being built, the company's leaders decide to offer discounted pricing to customers to ensure that they have a steady stream of work. d. Seeing the success of the hospital construction company, other construction firms decide to narrow their focus and create business units dedicated to this customer segment.

Answer 1

Q1 d)the higher margins of the firm can reduce the influence of increases in supplier costs

Q2 a)Compared to intangible resources, tangible resources are a superior source of capabilities and, subsequently, core competencies and They are organized as financial, physical, technological, and organizational resources

Q3 d)Competitors' innovations resulting in their ability to drive costs lower

Q4c) it helps a firm exploit opportunities in its external environment.

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