Chapter 14 Competitive Advantage

Which of the following is an example of competitive advantage?

• Buying Burger King instead of McDonalds.

• Buying a Michael Kors crossbody bag instead of Michael Kors tote bag.

• Updating Windows 7 to Windows 10.

• Buying an iPhone SE instead of iPhone 6.

Thomas owns a large IT company. He attempts to gain an upper hand in the market by using very skilled workers and inexpensive raw materials. Overall, he is very focused on controlling the costs in order to maximize the value of his products to consumers. How is this an example of cost-competitive advantage?

• 
  Because the focus is exclusively on minimizing the cost of materials.

• Because he advertises that his products are very cheap.

• Because the overall focus is on controlling costs in every segment of production.

James' company owns several supermarkets. His company has decided to install self-checkout lanes in order to decrease their costs. What method is James' company using?

• 1. Creating a new delivery method.

• 1. Product design.

• 1. Service differentiation.

• 1. Re-engineering.

Your company offers the best cars on the market at relatively affordable prices. You currently have no competitors regarding the features your cars have. Why is this an example of product differentiation?

• Because you are advertising the unique features of the product.

• Because any kind of new product by a company is an example of product differentiation.

• 
  Because you are advertising the car as relatively affordable.

• Because the quality of your products is very high.

Which of the following is an example of a company using a niche competitive marketing strategy?

• A confectionery that sells both European and American chocolates.

• A company that makes clothing specifically for dogs.

• A company that sells soda worldwide.

• A nationwide department store chain.