Strategic Marketing Lecture 3: External Environment and Sustainable Competitive Advantage

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What is a key characteristic of a Sustainable Competitive Advantage?

Easily duplicable by competitors

Valued by customers and supported by inimitable assets and competencies (correct)

Temporary and short-lived

Focused solely on intangible assets

What is a type of intangible asset that a firm may possess?

Factory equipment

Cash reserves

Intellectual Property (correct)

Market share

What is the primary difference between a Competitive Advantage and a Sustainable Competitive Advantage?

The type of resources used to achieve the advantage

The duration of the advantage (correct)

The level of profitability

The number of competitors involved

What is an example of a tangible asset that a firm may possess?

Value Chain Position Signup and view all the answers

What is necessary for a firm to achieve a Sustainable Competitive Advantage?

A strategy valued by customers and supported by inimitable assets and competencies Signup and view all the answers

What is the primary goal of achieving a Competitive Advantage or a Sustainable Competitive Advantage?

To achieve above normal profits or superior financial performance Signup and view all the answers

What is the primary purpose of analyzing the external environment in strategic marketing?

To understand the factors that might affect a company's business Signup and view all the answers

What is a limitation of Porter's Five Forces model?

It fails to consider strategic alliances Signup and view all the answers

What is competitive advantage in the context of strategic marketing?

An advantage over competitors gained by offering consumers greater value Signup and view all the answers

What is a key consideration when assessing a company's sustainable competitive advantage?

The company's ability to adapt to external dynamics Signup and view all the answers

What is the primary purpose of creating superior value in strategic marketing?

To offer consumers greater value than competitors Signup and view all the answers

What is a key aspect of analyzing a company's external environment?

Understanding the factors that might impact the company's business Signup and view all the answers

What is the primary purpose of a portal?

To control a gateway through which others must pass to access information, products, or services Signup and view all the answers

What is the primary benefit of having a market window?

To have superior visibility into marketplace activity Signup and view all the answers

What is the formula for customer value?

Customer Value = (1-Perceived Risks)*(Perceived Benefits – Perceived Lifecycle Costs) Signup and view all the answers

What is an example of a firm lowering costs?

Amazon.com lowers the price of books online Signup and view all the answers

What is a competitive advantage?

An advantage over competitors gained by offering consumers greater value than competitors Signup and view all the answers

What is the result of having a sustainable competitive advantage?

Superior performance Signup and view all the answers

What is the primary goal of car dealers using lease deals?

To reduce acquisition costs Signup and view all the answers

What is the benefit of modular product design, as demonstrated by Siemens?

Reducing maintenance costs Signup and view all the answers

What is the primary benefit of online banking?

Reducing usage costs Signup and view all the answers

What is the term for a unique and relevant feature or benefit that sets a product apart from its competitors?

Point of difference Signup and view all the answers

What is the goal of value leadership?

To increase value by changing the competitive profile Signup and view all the answers

What is the primary benefit of Darty's take-back program for old white goods?

Reducing disposal costs Signup and view all the answers

What is gained by offering consumers greater value than competitors?

Competitive Advantage Signup and view all the answers

What is the outcome of eliminating the physical renting of movies and old supply chains?

Creating binge viewing and new offerings Signup and view all the answers

What is the result of Netflix's new consumption setting?

Raising brand profile and cash flow predictability Signup and view all the answers

What is a key aspect of ZARA's Sustainable Competitive Advantage?

Unique resources and capabilities Signup and view all the answers

What is the outcome of reducing complexity of fees and consumption costs?

Raising cash flow predictability Signup and view all the answers