BMGT 4930 EXAM QUESTIONS AND ACCURATE
ANSWERS
Generic Strategy - ANSWER A general way of positioning a firm's business-level strategy
within an industry.
Two competitive dimensions are the keys to business-level strategy: - ANSWER A
company's source of competitive advantage. This dimension involves whether a company
tries to gain an edge on rivals by keeping costs down or by offering something unique in
the market.
A company's scope of operations. This dimension involves whether a company tries to
target customers in general or whether it seeks to attract just a segment of customers.
cost leadership strategy - ANSWER offers products or services with acceptable quality and
features to broad set of customers at a low price.
Advantages: withstanding price competition, discouraging new entrants, and attracting a
large market share.
Disadvantages: Need to maintain high sales volume, and minimizing time for advertising,
market research, and research and development
differentiation strategy - ANSWER attempts to convince customers to pay a premium price
for its goods or services by providing unique and desirable features.
Advantages: Ability to obtain premium prices from customers, strong margins, buyer
loyalty.
Disadvantages: Customers may not be willing to pay extra for the brand's unique features,
prefer a cheaper alternative, or able to find competitors imitating the preferred features
Price sensitive - ANSWER The extent to which a price increase makes a buyer less likely to
purchase an item.
focus strategy - ANSWER Appeal to broad markets contrasts with strategies that involve
targeting a relatively narrow niche of potential customers
Focus cost leadership strategy - ANSWER requires competing based on price to target a
