Question 1

When analyzing Porter's Three Generic Strategies for entering a market,if you have a focused strategy what market should you target?

Accepted Answer

When analyzing Porter's Three Generic Strategies for entering a market,if you have a focused strategy you should target a narrow market,niche market,or a unique market.

Question 2

Jennifer Bloom is writing a paper and she must determine which of Porter's Three Generic Strategies The Museum Company has implemented.Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.What would Jennifer determine The Museum Company is using as its generic strategy?

Accepted Answer

The Museum Company competes using a narrow market and high cost focus.

Question 3

When applying Porter's Three Generic Strategies,Tiffany & Co.has a competitive scope and cost strategy that is __________.

Accepted Answer

Tiffany & Co.competes by offering a differentiated product,jewelry,at high prices.Its business strategy allows it to be a high-cost provider of premier designer jewelry to affluent consumers.

Question 4

When analyzing the book store industry,some of today's businesses compete with different business strategies and cost strategies.Which of the following is using a broad market competitive scope along with a low cost strategy?

Accepted Answer

Amazon.com competes by offering a broad range of differentiated products at low prices.

Question 5

What is supplier power?

Accepted Answer

Supplier power is the suppliers' ability to influence prices.

Question 6

Which of the following demonstrates a company that has implemented a low cost,broad market strategy?

Accepted Answer

Walmart competes by offering a broad range of products at low prices.Its business strategy is to be the low-cost provider of goods for the cost-conscious consumer.

Question 7

What is buyer power?

Accepted Answer

Buyer power is the ability of buyers to affect the price they must pay for an item.

Question 8

What is rivalry among existing competitors?

Accepted Answer

Rivalry is high when competition is fierce in a market and low when competitors are more complacent.

Question 9

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces model.Which of the following represents rivalry in the soft drink industry?

Accepted Answer

The rivalry between Coke and Pepsi is famous in the soft drink industry.

Question 10

If a business is following a focused strategy then its competitive scope is ________.

Accepted Answer

When you have a market segment their competitive scope should be a narrow market,and the cost strategy should be a focused strategy.

Question 11

Which of the below is similar to focused strategy versus broad strategy?

Accepted Answer

Focused strategies versus broad strategies is synonymous to niche market versus large markets.

Question 12

What is threat of new entrants?

Accepted Answer

Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.

Question 13

What is threat of substitute products or services?

Accepted Answer

Threat of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Question 14

According to Porter companies that wish to dominate broad markets should operate using a ________ strategy.

Accepted Answer

According to Porter broad markets should utilize cost leadership with a low cost and differentiation with a high cost.

Question 15

Your boss,Penny Dirks,has asked you to analyze the airline industry using Porter's Three Generic Strategies.Which of the following companies are using a cost leadership strategy?

Accepted Answer

Southwest,Horizon,Frontier,and JetBlue all use cost leadership business strategies.

Question 16

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?

Accepted Answer

Payless competes by offering a specific product (narrow market)shoes at low prices.Their strategy is to be the low-cost provider of shoes.

Question 17

Your boss,Penny Dirks,has asked you to analyze the airline industry using Porter's Three Generic Strategies.Which of the following companies are using a focused strategy?

Accepted Answer

Sky Taxi is using a focused-strategy targeting individuals that want to hire private planes.

Question 18

Porter identified Three Generic Strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's Three Generic Strategies?

Accepted Answer

Porter has identified three generic business strategies for entering a new market: 1)broad cost leadership,2)broad differentiation,and 3)focused strategy.

Question 19

Your boss,Penny Dirks,has asked you to analyze the airline industry using Porter's Three Generic Strategies.Which of the following companies are using a differentiation strategy?

Accepted Answer

British Airways,Singapore Airlines,and Virgin Atlantic all compete using differentiation strategies.

Question 20

Broad differentiation,broad cost leadership,and _________ create the Three Generic Strategies identified by Porter.

Accepted Answer

The three strategies proposed by Porter are 1)broad cost leadership,2)broad differentiation,and 3)focused strategy.

Quiz 1: Management Information Systems: Business Driven MIS