Corporate and Competitive Strategy Quiz

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What is the main focus of corporate strategy?

Gaining competitive advantage

Exploiting core competencies (correct)

Creating innovative capabilities

Maximizing revenues

In the context of competitive advantage, what are the two sources of change?

Changing customer demand and changing employee preferences

External and internal sources (correct)

Global expansion and market saturation

Tech changes and pricing fluctuations

How can firms establish a competitive advantage over their rivals?

Supplying unique products at higher prices

Supplying identical products at lower prices (correct)

Maintaining average profitability in the market

Reducing product quality to match competitor pricing

What is the goal of business level strategy?

Determining how to compete in a specific product market (A) Signup and view all the answers

What is the purpose of a business strategy according to the provided text?

To create a difference between the firm's position and that of its competitors (A) Signup and view all the answers

What does the term 'richness' refer to in the context of business strategy, as per the text?

The depth and detail of flow of information between the firm and customer (A) Signup and view all the answers

According to Michael Porter's framework, which of the following is one of the three generic strategies for gaining competitive advantage?

Cost leadership (C) Signup and view all the answers

What is the main consideration for firms when choosing a business level strategy, based on the text?

Maximizing the gap between supplier's cost and customer's willingness to pay (D) Signup and view all the answers

How do firms strengthen relations with customers, according to the provided text?

By encouraging ongoing interactions with customers (C) Signup and view all the answers

What is the focus of market segmentation according to the text?

Dividing customers into groups based on needs (C) Signup and view all the answers

In terms of business models, what does 'digital platform' refer to as per the text?

Internet-based location for exchanges of info/goods/services between producers/consumers (B) Signup and view all the answers

What is the main goal of narrow target markets according to the provided text?

To maximize the gap between supplier's cost and customer's willingness to pay (C) Signup and view all the answers

What is considered a business level strategy according to Michael Porter's framework?

The sets of commitments/actions that a firm intends to follow to gain competitive advantage (B) Signup and view all the answers

What does 'affiliation' encourage firms to do, according to the provided text?

Encourage ongoing interactions with customers by delivering superior value (D) Signup and view all the answers

What is the primary focus when determining 'who will be served' according to the provided text?

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What is a characteristic of business model innovation according to the provided text?

Firm determines its current business model is outdated and successfully replaces it with newer ones (B) Signup and view all the answers