Mgmt 485 Mini Exam

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10. What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving. a. a low-cost provider strategy: striving to achieve lower overall costs than rivals and appealing to a broad spectrum of customers, usually by under-pricing rivals. b. a broad differentiation strategy: seeking to differentiate the company’s product or service from rivals’ in ways that will appeal to a broad spectrum of buyers. c. a focused low cost strategy: concentrating on a narrow buyer segment and outcompeting rivals by having lower costs than rivals and thus being able to serve niche members at a lower price. d. focused differentiation strategy: concentrating …show more content…

23. What are the strategic advantages of a backward vertical integration strategy? * Better quality product/service offering * Improves the caliber of customer service * Enhance the performance of final product * Spare the company the uncertainty of relying on suppliers for crucial components/support services * Lessen the company’s vulnerability to powerful suppliers 24. What are the strategic advantages of a forward vertical integration strategy? * Lower distribution costs * Relative cost advantage over rivals * Higher margins * Lower selling prices to end users 25. What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense? * Activity can be performed better by outside specialists * Activity is not crucial to the firm’s ability to achieve sustainable competitive advantage * It improves organizational flexibility and speeds time to market * Reduces the risk exposure to changing technology and/or buyer preferences * Allows a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best. 26. Identify and briefly explain 5 types of offensive

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