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Self Test Questions Which barrier to entry is based on high production volumes that result in low overall costs compared to competitors: switching costs supplier power economies of scale buyer power government policy Self Test Questions

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Self Test Questions

  • Which barrier to entry is based on high production volumes that result in low overall costs compared to competitors:

    • switching costs

    • supplier power

    • economies of scale

    • buyer power

    • government policy


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Self Test Questions

  • When a firm matches its distinctive competences to factors critical to industry success, it achieves:

    • parity in its industry

    • a market foundation

    • competitive advantage

    • industrial alliance


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Self Test Questions

  • Which of the following is one of the generic strategies for competitive advantage identified by Michael Porter and discussed in your text:

    • market penetration

    • product diversification

    • market segmentation

    • product differentiation

    • product development


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Self Test Questions

  • Consumers pay a premium to an iPod digital music player from Apple Computer. The iPod is characterized by distinctive styling and superior ease of use; Apple currently commands about 80 percent of the market for digital music players. Which of Porter’s generic strategies best describes Apple’s approach with its iPod:

    • cost leadership

    • differentiation

    • cost focus

    • focused differentiation


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Self Test Questions

  • Iridium Satellite LLC offers satellite Internet service with global coverage to customers who operate in remote areas not served by other connections. Which generic strategy does this illustrate:

    • cost leadership

    • differentiation

    • cost focus

    • focused differentiation


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