A) When the offerings of rival firms are essentially identical, standardized, commodity-like products
B) When there are few ways to achieve differentiation that have value to buyers
C) When price competition is especially vigorous
D) When buyers have widely varying needs and special requirements and the prices of substitute products are relatively high
E) When entry barriers are low and there is a stream of newcomers to the industry
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A) selling a product with the best cost at the best price.
B) having the best cost (as compared to rivals) for each activity in the industry's value chain.
C) providing buyers with the best attributes at the best cost.
D) incorporating attractive or upscale attributes into its product offering at a lower cost than rivals.
E) doing a better job than rivals of adopting the best operating practices.
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A) price competition among rival sellers is especially vigorous.
B) there are few ways to achieve product differentiation that have value to buyers.
C) buyers incur low costs in switching their purchases from one seller/brand to another.
D) industry newcomers use low introductory prices to attract buyers and build a customer base.
E) All of these.
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A) whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs.
B) how easy it is for the low-cost leader to gain the biggest market share.
C) the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs.
D) the leader's ability to combine the cost advantage with a reputation for good quality.
E) the low-cost leader's ability to be the industry leader in manufacturing innovation so as to keep lowering its manufacturing costs.
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A) deliver superior value to buyers by satisfying their expectations on key quality/performance/features/service attributes and beating their expectations on price (given what rivals are charging for much the same attributes) .
B) offer buyers the industry's best-performing product at the best cost and best (lowest) price in the industry.
C) attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price.
D) outcompete rivals using low-cost provider strategies.
E) translate its best-cost status into achieving the highest profit margins of any firm in the industry.
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A) strong efforts to be a leader in manufacturing process innovation.
B) communicating the product's ability to serve the customer's every need.
C) employing an aggressive offense to gain market share or a conservative defense to
D) protecting its market position.
E) out-managing rivals in finding ways to perform value chain activities faster.
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A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
B) move the performance of most all value chain activities to low-wage countries.
C) sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.
D) do two things: (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
E) outsource the biggest majority of value chain activities.
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A) relying too heavily on outsourcing.
B) getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.
C) getting trapped in a price war with low-cost leaders.
D) being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.
E) not having a sustainable distinctive competence in cost reduction.
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A) whether the product is strongly differentiated or weakly differentiated from rivals.
B) the degree of bargaining power that buyers have.
C) the size of the buyer group that a company is trying to appeal to.
D) the type of value chain being used to achieve a low-cost competitive advantage.
E) the number of upscale attributes incorporated into the product offering.
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A) diverse buyer preferences make product differentiation the norm and where many buyers are sensitive to both price and value.
B) a company is positioned between competitors who have ultra-low prices and competitors who have top-notch products in terms of both quality and performance.
C) buyers are more quality-conscious than price-conscious.
D) there are numerous buyer segments, buyer needs are diverse across these segments, only a few of the segments are growing rapidly, and seller's products are strongly differentiated.
E) buyers are more performance conscious than value conscious.
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A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.
B) not establishing strong alliances and partnerships with key suppliers.
C) that low-cost leaders will be able to steal away some customers on the basis of a lower price and high-end differentiators will be able to steal away customers with the appeal of better product attributes.
D) that it will be unable to achieve top-notch quality at a rock-bottom cost.
E) becoming too highly integrated and not relying enough on outsourcing.
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A) building a brand name image that buyers trust.
B) delivering superior value to buyers and building competencies and resource strengths in performing value chain activities that rivals cannot readily match.
C) achieving lower costs than rivals and becoming the industry's sales and market share leader.
D) finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities.
E) getting in the best strategic group and dominating it.
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A) buyers are looking for the best value at the best price.
B) buyers are looking for a budget-priced product.
C) buyers are price sensitive and are attracted to brands with low switching costs.
D) demand in the target market niche is growing rapidly and a company can achieve a big enough volume to fully capture all the available scale economies.
E) a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment.
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