Competitive Advantage and Benchmarking Quiz

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What is the key requirement for enhancing the likelihood of competitive advantage?

Making grandiose statements

Addressing all competitive challenges

Creating a successful combination of strategic activities (correct)

Providing products or services at an affordable price point

In the context of strategic positioning, what do managers need to make conscious trade-offs about?

How to achieve grandiose statements

Avoiding all competitive challenges

Which activities to pursue (correct)

Investing in operational effectiveness

What distinguishes a unique strategic position in achieving competitive advantage?

Relying solely on grandiose statements

Performing different activities or the same activities differently than rivals (correct)

Performing all activities exactly like rivals

Neglecting strategic activities for operational effectiveness

What is not considered a strategy according to the text?

Grandiose statements Signup and view all the answers

Value creation by companies allows them to provide products or services at an affordable price point in order to:

Make a profit Signup and view all the answers

What is the primary source of competitive advantage for Walmart in the retail industry?

Operating big stores with low overhead and low wages Signup and view all the answers

What is at the core of competitive parity?

Achieving the same level of performance as competitors Signup and view all the answers

Based on the text, what forms the foundation of a competitive disadvantage?

Failing to meet the competitive challenge Signup and view all the answers

In the context of Tesla, what action contributes to sustainable competitive advantage?

Sharing proprietary technology with the public Signup and view all the answers

What is a key element of achieving a competitive advantage?

Ramping up production volumes for economies of scale Signup and view all the answers

Which factor contributes most to competitive disadvantage in the global smartphone market share?

Manufacturing unattractive and expensive vehicles Signup and view all the answers

What is a potential consequence of failing to address the competitive challenge for companies in various industries?

Experiencing a competitive disadvantage Signup and view all the answers

What is the key difference between competitive disadvantage and competitive parity?

Competitive disadvantage means underperforming rivals, while competitive parity means performing at the same level as rivals. Signup and view all the answers

In the context of global smartphone market share, what does it mean if a vendor consistently outperforms competitors over a prolonged period?

They have a sustainable competitive advantage. Signup and view all the answers

How can a firm gain a competitive advantage according to the text?

By offering goods or services that consumers value more highly or at a lower price compared to competitors. Signup and view all the answers

Which term describes a firm that underperforms its competitors or the industry average?

Competitive Disadvantage Signup and view all the answers

What is the main focus when assessing competitive advantage according to the text?

Benchmarking against industry competitors and the industry average Signup and view all the answers

What does strategic positioning aim to achieve for a firm?

Achieve a unique position to provide value to customers and control costs Signup and view all the answers

Competitive Advantage and Benchmarking Quiz

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