Question 1

_____ is a strategy of increasing market share for present products in existing markets.

Accepted Answer

Market penetration is the strategy of increasing market share for present products in existing markets. This can be achieved through tactics like advertising, sales promotions, and enhancing distribution channels.

Question 2

Which of the following is NOT a source of a cost competitive advantage?

Accepted Answer

Breakeven analyses are not a source of cost competitive advantage. They are a tool used to determine the minimum sales required to cover all costs and reach the point of profitability. While efficient labor, production innovation, experience curves, and reengineering may result in cost savings, breakeven analyses do not directly contribute to cost competitiveness.

Question 3

There are many different kinds of cheese.According to its ads,only Jarlsberg Lite has 50 percent less fat,60 percent less cholesterol,and 100 percent of the taste of other kinds of cheese.This advertising statement describes Jarlsberg Lite's:

Accepted Answer

The advertising statement describes Jarlsberg Lite's competitive advantage over other kinds of cheese by highlighting its lower fat and cholesterol content without compromising its taste. This sets it apart from its competitors and makes it more desirable to health-conscious customers.

Question 4

Through the use of _____,Revlon identified the fact that its brand names (Revlon,Almay and Flex)had developed a poor image with both its customers and its retailers.

Accepted Answer

Environmental scanning is the process of collecting and analyzing information about the external marketing environment, including competition, technology, economic trends, and cultural shifts. Through environmental scanning, Revlon was able to identify the negative perception of its brand names among customers and retailers. Marketing control refers to the process of monitoring and adjusting marketing programs and strategies to ensure their effectiveness. Environmental control refers to managing the impact of the company’s operations on the environment. A social audit is an evaluation of a company’s performance in terms of its social responsibility. Strategic analysis refers to the process of analyzing a company’s strengths, weaknesses, opportunities, and threats to develop effective strategies for achieving its goals.

Question 5

As a customer entered the Hornady store,which sells muzzle loading rifles,a salesperson approached her and said,"Hornady lead round balls are the musket balls your customers ought to buy.They are the most uniform in size and shape,and they are made of pure lead.Our shot is used by the Muzzle Loading World Champion." The salesperson was describing Hornady's:

Accepted Answer

The salesperson is describing Hornady's competitive advantage, which is the characteristic that sets the company apart from its competitors and makes its products more appealing to customers. In this case, the competitive advantage is the quality and effectiveness of Hornady's lead round balls for muzzle loading rifles.

Question 6

_____ show costs declining at a predictable rate as experience with a product increases.

Accepted Answer

Experience curves show costs declining at a predictable rate as experience with a product increases.

Question 7

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses,Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi uses _____ to create its competitive advantage.

Accepted Answer

Aldi's competitive advantage is created by offering no-frills goods and services, emphasizing low-priced, private-label brands and cost control to offer customers savings of 30 to 50 percent compared to traditional supermarkets.

Question 8

Patents on allergy relief medications like Allegra and Claritin give the pharmaceutical companies that own the patents a(n)_____ for 17 years until the patent expires.

Accepted Answer

A patent provides a sustainable competitive advantage for the pharmaceutical company that owns it because it gives them exclusive rights to produce and sell the medication for a certain period of time, in this case, 17 years. This allows them to charge higher prices and control the market for allergy relief medications, creating a significant competitive advantage.

Question 9

Everyone knows the brand name Kleenex.Kleenex is what many consumers think of when they think of tissues.This widely recognized brand name is a source of:

Accepted Answer

Kleenex's widely recognized brand name is a source of product differentiation competitive advantage, as it is what sets their tissue products apart from competitors and creates a loyal customer base.

Question 10

Which of the following companies has a competitive advantage?

Accepted Answer

The answer of Which of the following companies has a...

Question 11

Fujisawa is Japan's seventh-largest pharmaceutical company.It sells drugs taken by organ transplant patients to increase the probability that the new organ will operate efficiently and not be rejected.Currently,the only products that Fujisawa makes are these organ transplant drugs,which it sells worldwide.Its patents protect it from competitors.Fujisawa has a:

Accepted Answer

Fujisawa's focus on producing drugs for organ transplant patients gives them a niche competitive advantage, as they are the only company producing these specific drugs and have patents protecting them from competition. While they may have elements of brand and marketing strategies, their primary competitive advantage is their niche focus on organ transplant drugs. It is unclear if they have a cost competitive advantage or a sustainable competitive advantage based on the given information.

Question 12

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses,Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi has a(n)

Accepted Answer

Aldi's emphasis on low-priced, private-label brands and control of expenses allows them to offer significant cost savings to customers, creating a cost competitive advantage.

Question 13

Bayer is planning on creating a _____ advantage by restructuring and selling off SBUs that do not complement its primary product lines.Through reengineering the company hopes to increase its profit margins,improve inventory turnover,and make itself more attractive to investors.

Accepted Answer

Bayer's restructuring and selling off of non-complementary SBUs is a cost-cutting measure aimed at increasing profit margins and improving inventory turnover, indicating a focus on cost competitive advantage.

Question 14

Yuengling is the oldest brewery in the United States.It was founded in 1827 in a time when small breweries dotted the nation.It has survived by severely limiting sales of the beer and creating a mystique about the brand.In areas,where the beer is sold,its brand name is used the same as Kleenex is used by many to represent all types of tissues.Its competitors all wanted to expand their markets.Yuengling's strategy was "To do nothing." For over 170 years,this strategy has given the brewery a:

Accepted Answer

Yuengling's strategy of severely limiting sales and creating a mystique about the brand has given it a niche competitive advantage. This means that Yuengling has a unique position in the market that is not easily replicated by competitors.

Question 15

Knorr,manufacturer of soup,dip,and gravy mixes,printed on-package recipes,gave out coupons to existing customers,and created a recipe booklet that could be ordered with three UPC codes from three different Knorr products.All of these activities would be representative of a _____ strategy.

Accepted Answer

Knorr's activities of printing on-package recipes and giving out coupons to existing customers are both aimed at encouraging existing customers to purchase more of Knorr's products, which is the goal of a market penetration strategy. The creation of a recipe booklet that could be ordered with three UPC codes from three different Knorr products is also an example of trying to increase the purchasing frequency of existing customers, which falls under the umbrella of a market penetration strategy.

Question 16

Arizona Tea is marketed by Vultaggio & Sons.Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs.The wide-mouthed,long-necked bottles are now considered to be trendsetters in the new age beverage industry,and customers often buy the tea just for the bottle.The success of Arizona Tea is based on:

Accepted Answer

The success of Arizona Tea is due to its product differentiation competitive advantage. Vultaggio & Sons differentiated their product by putting it into unique bottle designs, which set it apart from other drinks on the market. Customers are willing to pay for Arizona Tea, not just for the taste, but also for the distinctive bottle.

Question 17

Bentley automobiles are extremely expensive and are designed to appeal to consumers who equate value and quality with price.The manufacturer of Bentley automobiles has created a(n)_____ competitive advantage.

Accepted Answer

Bentley automobiles' high price and quality appeal to a specific group of consumers, creating a niche market for the brand. This gives them a competitive advantage in catering to the needs and desires of this particular segment of the market.

Question 18

Through the use of environmental scanning,the manufacturers of video games for Xbox and PlayStation2 could:

Accepted Answer

Environmental scanning can help manufacturers of video games for Xbox and PlayStation2 to determine why the market for video games is slowing. By keeping an eye on factors such as changing consumer preferences, emerging technologies, and economic trends, the manufacturers can identify potential challenges and opportunities in the market. This information can help them stay ahead of the competition and make informed decisions about product development, pricing strategies, and marketing campaigns.

Question 19

Technol Medical Products makes specialty face masks to shield health-care workers from infection.Because it focuses on this narrow market,it is able to outsell its primary competitors-3M and Johnson & Johnson.Technol Medical products has a(n):

Accepted Answer

Technol Medical Products has a niche competitive advantage, as they focus on a narrow market and are able to outsell their primary competitors.

Question 20

Which of the following is NOT a type of strategic alternative that matches products and markets?

Accepted Answer

Vertical integration is not a type of strategic alternative that matches products and markets. Vertical integration refers to the acquisition of companies that are part of the same supply chain to gain more control over the production process. The other options - product development, market development, diversification, and market penetration - all involve matching products and markets in some way.

Quiz 2: Strategic Planning for Competitive Advantag