Question

Firms pursuing a differentiation strategy primarily seek to:

		Keep their cost structures lower than that of the cost leader.
		Reduce the value gap to gain a competitive advantage.
		Provide products that are a direct imitation of the competitors’ products
		Create higher customer perceived value that the value competitors create. Which of the following stages of the strategic management process involves an evaluation of a firm’s external and internal environments? Strategy analysis Strategy implementation Strategy formulation Strategy control How did Marriott Hotel use economies of scope to achieve greater economic value than its competitors? Marriott increases in cost per hotel unit as number of customers increases. Marriott decreases in cost per hotel unit as number of customers increases Marriott lowered its cost structure by focusing its production assets on one type of hotel, which increased its menu and thus its differentiated appeal. Marriott lowered its cost structure by sharing its production assets over a several types of hotels, which increased its menu and thus its differentiated appeal. Which of the following is a key question manager must answer to formulate an appropriate business-level strategy? When will we satisfy our customer needs? How will we satisfy our customer needs? Where will we satisfy our customer needs? Can we satisfy our customer needs?

Answer 1

1. (Option d) create higher customer perceived value than the value competitors create

Firms pursuing a differentiation strategy primarily seek to create higher customer perceived value than the value competitors create.

2. (Option a) Strategic analysis

Strategic analysis stage of the strategic management process involves an evaluation of a firm’s external and internal environments before formulating strategy.

3. (Option d) Marriott lowered its cost structure by sharing its production assets over a several types of hotels, which increased its menu and thus its differentiated appeal.

Marriott Hotel use economies of scope to achieve greater economic value than its competitors by lowering its cost structure by sharing its production assets over a several types of hotels, which increased its menu and thus its differentiated appeal.

4. (Option b) How will we satisfy our customer needs?

A key question manager must answer to formulate an appropriate business level strategy.