Question 18:- Which of the following is an example of competing on the basis of differentiation? a. D. Different car manufacturers compete in tiny supercar category A low-cost carrier or low-cost airline (occasionally referred to as no-frills, budget or discount carrier or airline, and abbreviated as LCC) is an airline that is operated with an especially high emphasis on minimizing operating costs and without some of the traditional services and amenities provided in the fare, resulting in lower fares and fewer comforts. Get 1:1 help now from expert Operations Management tutors When the brand differences from company to company are minor, and at the same time, the products are standardized and readily available 2. B. Aerodiungel's Eridla brand is considered a luxury car. For example, Walmart and Costco are leaders in the overall low-cost strategy. For this strategy to be successful, it requires that only one or two companies can be industry leaders in this position. 1. A. Banana Republic. IKEA is a low-cost leader using a focused low-cost strategy, appealing to a particular segment of the overall market. Expert Answer . Considered alone, this would be a low-cost strategy but Amazon also offers an unmatched portfolio of goods. If suppliers are unreliable or too costly, which of these strategies may be appropriate. Despite its attractive price tag, the Yugo was a dismal failure because the car was so poorly made that drivers simply could not depend on the car for transportation. B) A firm offers more reliable products than its competitors do. Which statement best describes intuition? SAS and its low cost alternative Snowflake is a good example illustrating the strategies are incompatible. A) It alone should be used in decision-making. Course Hero is not sponsored or endorsed by any college or university. What is focused low cost strategy? A low-cost strategy requires organizations to: focus its attention on customers from a particular geographic area. Management Chapter | Multiple Choice | Questions and Answers | Test Bank. Product costs and operational expenses must be kept low in order for customers to take advantage of the savings the low-cost leadership strategy offers. The automotive company Ford is known for this strategy in its early days in the 1900s. Low cost strategy is a type of pricing strategy in which the firm offers the products at low price. A) best-cost provider B) broad differentiation XC) focused low-cost D) focused differentiation E) low-cost leadership Answer: C 21) A _____ strategy can also be referred to as a middle-of-the-road strategy. A. Streetsuit's everyday low price's (EDLP) strategy hinges upon ability to obtain consumer good. For example, other firms may be able to lower their costs as well. This combination makes A… A. Streetsuit's everyday low price's (EDLP) strategy hinges upon ability to obtain consumer good. 3. 18) Which of the following is an example of a focused low-cost strategy? Which of the following is an example of a primary activity in a firm's value chain? A.) 2. An example of low-cost strategy would be Vizio, a company that designs flat panel LCD and Plasma TVs. This is a strategy where businesses selling similar products in a given niche lower their prices in order to increase revenue and gain a … Non Stop Yacht has targeted yacht manufacturing industry and within this … increase the spending on research and development to differentiate its products from those of its competitors. C) A firm's products are introduced … A focused cost leadership strategy requires competing based on price to target a narrow market (Table 5.6 “Focused Cost Leadership”).A firm that follows this strategy does not necessarily charge the lowest prices in the industry. The time required to achieve economies of scale is longer. Gap. A) intangible product B) easy to store C) customer interaction is high D)... ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? Which of the following is an example of competing on the basis of differentiation? C)... MRP II is accurately described as: A) MRP software designed for services. A) item quality B) unit price ... ABC analysis is based upon the principle that: A) all items in inventory must be monitored very closely. Low cost strategy is a type of pricing strategy in which the firm offers the products at low price. The airline industry is a highly competitive market and some companies have adopted the cost leadership strategy to dominate the market and achieve a better position among its rival. When the costs of supplies increase in an industry, the low-cost leader a. may continue competing with rivals on the basis of product features. Price skimming—setting a high price and lowering it as the market evolves. An example of low-cost strategy would be Vizio, a company that designs flat panel LCD and Plasma TVs. Value-based pricing—setting a price based on how much the customer believes what you’re selling is worth. Which of the following is the best example of competing on low-cost leadership? Which of the following is an example of horizontal alignment? A low-cost provider strategy works best under the following situations: 1. This strategy is targeted to those via so desire to have unique products at a low cost. For example, following the differentiation focus strategy, Betterment – the largest automated investing service – clearly has a strong advantage by focusing on a … C. Old Navy. Cost Leadership Strategy. If suppliers are unreliable or too costly, which of these strategies may be appropriate? A strategy is a(n) a. set of opportunities in the marketplace b. broad statement of purpose c. simulation used to test various product line options d. plan for cost reduction e. action plan to achieve the mission e (Achieving competitive advantage through operations, moderate) 25. Which of the following is not an operations strategy a response b low cost, 20 out of 20 people found this document helpful. These subsidiaries are essentially clones of the home operations, since the business model and its success recipe are simply copied and pasted abroad. An integrated business level strategy combines the ideas of low cost and differentiation into one common goal. Operations Management Operations Strategy in a Global Environment, Northeastern Illinois University • MNGT 377. B. A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when C. The offerings of rival firms are essentially identical, standardized, commodity-like products ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? D. Different car manufacturers compete in tiny supercar category a company seeks to be the low cost provider and adopts a Loyal Soldier HR strategy B.) A cost leadership strategy targets the industry's ____ customers. direct its efforts to cater to a particular kind of customer. 20) Firms targeting a niche market with low cost products are pursuing a _____ strategy. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the: A cost performance index (CPI) of 0.89 means: Which of the following is NOT a typical service attribute? This is a strategy where businesses selling similar products in a given niche lower their prices in order to increase revenue and gain a … As technology improves, the competition may be able to leapfrog the production capabilities, thus eliminating the competitive advantage. 85. b. will lose customers as a result of price increases. Previous question Next question Get more help from Chegg. In almost any business, keeping your cost structure just a couple of percentage points lower than that of your competition can have a huge competitive advantage. For example, if two companies make essentially identical products that sell at the same price in the market place, the one with the lower costs has the advantage of a higher level of profit per sale. One of the most important traits for business success is being cheap! The Internet has made this possible for some organization. The Nature of the Focus Cost Leadership Strategy. The firm can gain cost advantages by increasing their efficiency, taking advantage of economies of scale, or by getting the raw material at low cost. This strategy helps to stimulate the demand & gain higher market share. d (Achieving competitive advantage through operations, moderate), The ability of an organization to produce goods or services that have some uniqueness in their, a key way in which business organizations compete with one, Which of the following statements best characterizes delivery, a company that always delivers on the same day of the week, a company that always delivers at the promised time, a company that delivers more frequently than its competitors, a company that delivers faster than its competitors, a company that has a computerized delivery scheduling system, b (Achieving competitive advantage through operations, difficult). At this time, we expect the total project to cost 89 percent more than planned. 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