Diseconomies of scale refers to when a company

has a constant return to scale

moves down the experience curve

Produces a an output level beyond the minimum efficient scale

has a steeper learning curve compared to its competitors.

Which of the following value chain activities is associated with differentiation strategies?

use of economies of scale

Purchase of high-quality inputs

selection of low-cost carriers

HR policies to reduce turnover

Under which of the following circumstances would a cost leadership/low cost strategy work best?

Product innovation is fast-paced

Product is a commodity

There are multiple firms following this strategy

Buyers needs are diverse

When is a FOCUS strategy a good idea?

Buyers needs are homogeneous

Leaders see the niche as crucial

Market has different segments

Focus only works with differentiation strategies.

Why is C the best illustration of a differentiation strategy? C's price is higher which signals higher quality

B has lower costs than C

A's lower price puts it into a different strategic group

C has higher costs than B which is typical of firms that differentiate.