Which type of diversification is most likely to create value through financial economies?
THE FOCUSED DIFFERENTIATION STRATEGY DIFFERS FROM THE DIFFERENTIATION STRATEGY IN THAT:
__ 11. The focused differentiation strategy differs from the differentiation strategy in that:
a. the suppliers component of the Five Forces Model is less important.
b. expansion into global markets requires this strategy because of cultural diversity.
c. the competitive scope changes from an industry-wide model to a narrow industry segment.
d. it is more difficult to establish a leadership position in the industry.
____ 12. The integrated cost leadership/differentiation strategy:
a. is one of the most common successful business strategies.
b. has been shown by research to be consistently correlated with above-average returns.
c. is more risky to implement than the cost-leadership or differentiation business strategies.
d. is a more stable business strategy once the firm is established in a leadership position.
____ 13. Competitive dynamics refers to a series of:
a. competitive actions taken by only one firm in a market.
b. competitive actions taken by the market leader.
c. competitive actions and competitive responses initiated among firms competing within a given market.
d. competitive actions and competitive responses initiated among firms competing within numerous markets.
____ 14. Two companies that share markets, but which have little similarity in their resources are:
a. direct, mutually-acknowledged competitors.
b. neither direct nor mutually-acknowledged competitors.
c. competitors who are probably not engaged in intense rivalry.
d. competitors who have reached mutually-sustainable competitive advantage.
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