Which of the Following Is NOT a Frequently Used Strategic

question 34

Multiple Choice

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?

• A) striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage
• B) outcompeting rivals on the basis of differentiating features such as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money
• C) simply trying to mimic the successful strategies of rivals
• D) focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche
• E) developing a cost advantage based on offering more value for the money

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Definitions:

Entire Value Chain

The full range of activities involved in designing, producing, marketing, and selling a product or service, from initial concept to delivery to the end user.

Variable Selling

Costs associated with selling that vary directly with the level of sales activity.

Administrative Costs

Administrative costs are expenses related to the general operations of a business, including salaries of office staff, utilities, and rent.

Absorption Approach

A costing method in which all of the manufacturing costs, including both fixed and variable manufacturing costs, are absorbed into the cost of a unit of product.