#1
What is SWOT analysis used for in competitive strategy?
To evaluate internal strengths and weaknesses
ExplanationSWOT analysis assesses internal strengths and weaknesses to make informed decisions in competitive strategy.
#2
What does the term 'Blue Ocean Strategy' refer to in competitive strategy?
Creating uncontested market space
ExplanationBlue Ocean Strategy involves creating new and uncontested market space.
#3
In competitive strategy, what is the purpose of a value chain analysis?
To identify sources of competitive advantage
ExplanationValue chain analysis aims to identify sources of competitive advantage within the business processes.
#4
Which of the following is a characteristic of a niche market strategy in competitive analysis?
Focusing on a specific market segment
ExplanationNiche market strategy involves focusing on a specific market segment to meet its specialized needs.
#5
What is the role of competitive intelligence in competitive strategy?
To monitor and gather information about competitors
ExplanationCompetitive intelligence involves monitoring and gathering information about competitors for strategic decision-making.
#6
Which of the following is a cost leadership strategy in competitive analysis?
Low-cost provider
ExplanationA cost leadership strategy involves becoming a low-cost provider to gain a competitive edge.
#7
What is Porter's Five Forces framework used to analyze in competitive strategy?
Competitive rivalry
ExplanationPorter's Five Forces framework analyzes competitive rivalry among industry players.
#8
Which factor is NOT considered as part of PESTEL analysis in the context of competitive strategy?
Economic
ExplanationPESTEL analysis considers political, economic, social, technological, environmental, and legal factors, excluding economic.
#9
What is the primary goal of a differentiation strategy in competitive analysis?
Offer unique and high-quality products/services
ExplanationThe primary goal of differentiation strategy is to offer unique and high-quality products or services.
#10
Which of the following is a limitation of the SWOT analysis in competitive strategy?
It may oversimplify complex situations
ExplanationSWOT analysis may oversimplify complex situations, limiting its effectiveness in strategic decision-making.
#11
What is the primary focus of the differentiation strategy in competitive analysis?
Offer unique and high-quality products/services
ExplanationThe primary focus of differentiation strategy is offering unique and high-quality products or services.
#12
Which of the following is a differentiation strategy in competitive analysis?
Product innovation
ExplanationDifferentiation strategy involves standing out through product innovation.
#13
In the BCG Matrix, what does the 'Star' category represent for a business unit?
High market share, high growth
ExplanationIn the BCG Matrix, 'Star' represents business units with high market share and high growth potential.
#14
Which competitive strategy involves targeting a specific market segment and tailoring products or services to that segment's needs?
Focus strategy
ExplanationFocus strategy involves targeting a specific market segment and tailoring offerings to meet its unique needs.
#15
What is the main focus of a cost leadership strategy in competitive analysis?
Achieving the lowest cost in the industry
ExplanationCost leadership strategy focuses on achieving the lowest cost in the industry.
#16
Which of the following is a characteristic of a hyper-competitive industry?
Rapid technological change
ExplanationHyper-competitive industries are characterized by rapid technological change and intense competition.
#17
What does the term 'strategic fit' mean in the context of competitive strategy?
Aligning organizational resources and capabilities with strategy
ExplanationStrategic fit involves aligning organizational resources and capabilities with the chosen competitive strategy.