weekly quizzes Flashcards
(35 cards)
Which one of the followings is the most salient element of Southwest Airlines’ cost leadership strategy, according to the lecture video and the Youtube clip on Southwest Airlines in the lecture folder?
policy choices
T/F Economies of scale tend to become rarer as a focal industry becomes mature.
T
According to the lecture video, IKEA’s business-level strategy is classified as broad cost leadership strategy. T/F
F
Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech’s competitors have begun to reduce the company’s competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
managerial diseconomies
Choices which firms make about the kinds of products and services they will sell that impact their relative cost position are known as
policy choices
In general, firms that are attempting to implement a cost-leadership strategy will choose to produce relatively simple standardized products that sell for relatively low prices compared to the products and prices of firms pursuing other business or corporate strategies. T/F
T
ALDI implements broad cost-leadership strategy to gain competitive advantage. T/F
F
Learning-curve cost advantages are restricted only to manufacturing and retail firms.
T/F
F
The specific actions a firm takes to implement its strategies are known as
tactics
resouces and capabilities that are valuable, rare, and costly to imitate are best described as
sustainable distinctive competencies
When tacit cooperation has the effect of reducing supply and increasing prices, it is known as
tacit collusion
Any actions a firm takes that have the effect of reducing the level of rivalry in an industry that also do not require firms in an industry to directly communicate or negotiate with each other can be thought of as
tacit collusion
VRIO can be applied not only to the resource-level but also to the firm-level itself.
T/F
F
In general, learning curve effect is a less sustainable source of competitive advantage based on cost leadership than economies of scale.
T/F
F
As per the lecture, in SWOT analysis, S and W relate to internal analysis and O and T external analysis.
T/F
T
Wal-Mart’s earlier mover advantage into the discount retail industry is an example of resources or strategies which are protected from imitation because of high social complexity.
t/f
f
As per the lecture, Xerox failed to generate competitive advantage, because it did not have valuable, rare, and hard to imitate resources and capabilities.
t/f
f
Which type of competition is characterized by a small number of firms, homogeneous products and costly entry and exit?
oligopoly
Within the five forces framework, the five most common threats facing firms from their competitive environment include each of the following except
complementors
________ costs exist when customers make investments in order to use a firm’s particular products or services.
customer-switching
PESTEL is a framework for analyzing industry structures.
t/f
f
In an industry, the products or services provided by a firm’s competition meet approximately the same customer needs in the same way as the products or services provided by the firm itself, whereas substitutes meet approximately the same customer needs but do so in different ways.
t/f
T
Understanding a firm’s general environment can help the firm identify some of the threats and opportunities it faces.
t/f
t
In general, technological change creates opportunities, but not threats.
t/f
f
