24 Questions
What hinders competitors from accessing certain cost factors, leading to a cost advantage?
The scarcity of certain cost sources
What is the result of a complex combination of multiple cost sources?
Impossibility of imitating complex cost sources
What is the outcome when a product or service is perceived as unique by customers?
Differentiation advantage
What is a possible risk associated with excessive use of the experience effect?
Annulment of the experience effect
What is one of the market characteristics that can influence product differentiation?
Variety of consumer tastes and needs
What is the relationship between perceived value and price in a differentiation advantage?
Perceived value is higher than price
What is a key requirement for a competitive advantage?
Related to a key factor of success
What is the main goal of a competitive strategy?
To create a defendable position in an industry
What is a characteristic of a cost leadership strategy?
Low costs
What is a condition for applying a cost advantage strategy?
Customers are price-sensitive
What is a source of cost advantage?
Economies of scale
What is a characteristic of a differentiation strategy?
Unique products
What is a type of competitive advantage?
Sustained competitive advantage
What is a factor for creating a competitive advantage?
Ability to detect changes
What is a barrier to imitation?
Causal ambiguity
What is a result of a cost leadership strategy?
Lower costs
What is a key factor in industries with rapid technological changes?
Innovation
What is the main difference between 'low cost' and 'low price'?
Internal vs. external variable
What is the main goal of a hybrid strategy?
To achieve a quality-price ratio
What is a barrier to imitation of a differentiated product?
Complex interrelations of proprietary resources and capabilities
What is a risk of pursuing a differentiation advantage?
All of the above
What is the main limitation of Porter's competitive strategies?
They are not mutually exclusive
What is the main goal of a firm pursuing a market segmentation strategy?
To target a specific group of customers
What is the main characteristic of a 'no frills' strategy?
Low price with minimal features
This quiz assesses understanding of cost advantages, including barriers to imitation, risks, and challenges in maintaining a cost advantage. It covers concepts such as scarcity of cost sources, experience effect, and changes in demand.
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