Mgmt 4513 Midterm Frederico Aime Questions

differentiation strategy Can defend against new entrants because: {Ans: •New products must surpass proven products •New products must be at least equal to performance of proven products, but offered at lower prices}Two unassailable assumptions in industry analysis {Ans: 1. No two firms are totally different 2. No two firms are exactly the same}Potential Pitfalls of Differentiation Strategies {Ans: Uniqueness that is not valuable Too much differentiation Too high a price premium Differentiation that is easily imitated Dilution of brand identification through product line extensions Perceptions of differentiation may vary between buyers and sellers}To position itself, the firm must decide whether it intends to: {Ans: •Perform activities differently (cheaper process) •Perform different (valuable) activities}Two Targets of Competitive Scope {Ans: broad scope narrow scope}Organizational Stakeholders {Ans: employees, managers, non-managers}