1. The most important risk of trade-up strategy is:

a. lack of credibility d. cannibalization b. increased costs e. none of the above c. loss of prestige 2. A major advantage of single segment strategy is:

a. single segment strategies are more profitable b. large firms are never interested in small segments c. by focusing on the segment, firms avoid competition from larger firms d. it helps firms keep costs low e. small segments are more suitable for large firms

3. The purpose of ________ is to seek a position of competitive advantage such as low cost, differentiation, or focus.

a. business strategy d. strategic analysis b. market segmentation e. product strategy c. competitive strategy

4. Which of the following is not a component of market orientation?

a. customer orientation b. competitor orientation c. interfunctional coordination d. internal orientation e. all of the above are components of a market orientation

5. The purpose of _______is to assess the organization's resources and capabilities and draw up a list of strengths and weaknesses.

a. internal analysis b. external analysis c. target market analysis d. segmentation analysis e. market analysis

6. ________ are skills, technologies, and knowledge that are embedded in organizational processes and enable the assets to be deployed profitably. a. core competencies b. resources c. distinctive capabilities d. organizational assets e. capabilities

7. The following are requirements for successful implementation of differentiation strategies EXCEPT:

a. the basis of differentiation is unique and valuable b. a large number of customers desires unique features of product or service c. firm possesses necessary resources and capabilities to pursue the differentiation strategy d. a large price sensitive market