Describe low-cost and differentiation strategies, and how a business can achieve competitive advantage with either of them.
What will be an ideal response?
Businesses using a low-cost strategy try to be efficient and offer a standard, no-frills product. Companies that succeed with a low-cost strategy often are large and take advantage of economies of scale-reductions in unit cost from large purchases or manufacturing runs-in production or distribution. Their scale may allow them to buy and sell goods and services at a lower price, which leads to higher market share, volume, and ultimately profits. To succeed, an organization using this strategy generally must be the cost leader in its industry or market segment. However, even a cost leader must offer a product that is acceptable to customers. With a differentiation strategy, a company tries to be unique in its industry or market segment along dimensions that customers value. This unique or differentiated position within the industry often is based on high product quality, excellent marketing and distribution, or superior service.
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The use of computers in the manufacturing process is referred to as?
a. CAM b. CAD c. CIM d. CNC
Answer the following statement(s) true (T) or false (F)
1. Although physical distribution by air has the fastest delivery speed, it is the worst method in terms of dependability. 2. Public and private warehouses both provide storage on a rental basis. 3. Freight forwarders combine small shipments from several firms and arrange for the merchandise to be picked up from the shipper and delivered to the buyer. 4. The materials handling phase of physical distribution does not start until the product has left the warehouse. 5. JIT systems allow organizations to maintain smaller inventories by ordering smaller amounts more often.
The relative frequency of workers who took 10 or fewer sick days is
a) 185. b) .925. c) 93. d) 15.
Which of the following statements about product line extensions is most accurate?
A. There are no risks associated with a product line extension strategy. B. A product line extension is a form of multibranding. C. A product line extension strategy typically leads to increased advertising costs compared with creating a new brand name. D. When the Clorox Company joins with Kroger supermarkets to advertise Clorox products in a local newspaper, it is engaged in a product line extension. E. A product line extension is a form of multiproduct branding.