Business School 101: Competitive Advantage Quiz

What is the primary goal of achieving a competitive advantage in strategic management?

• To increase the number of employees

• To outperform competitors in the marketplace

• To reduce the number of products

• To focus solely on cost reduction

Which company is known for its cost advantage through efficient supply chain management?

• MasterCard

• Apple

• Ferrari

• Walmart

How does Southwest Airlines maintain its cost advantage in the airline industry?

• By offering luxury services

• Through operational efficiency and low overhead costs

• By focusing on international flights

• Through exclusive partnerships with luxury brands

What sets Apple's products apart from its competitors, giving it a differentiation advantage?

• Extensive network of partnerships

• Focus on budget-friendly products

• Low production costs

• Unique features and high quality

Ferrari's differentiation advantage is primarily due to what aspect of its products?

• High performance and luxury design

• Affordable pricing

• Partnerships with airlines

• Mass production

How does Alibaba achieve a network advantage in the e-commerce industry?

• By focusing on local markets only

• By reducing product prices

• Through strategic partnerships and alliances

• Through exclusive product lines

What is a key benefit of having a competitive advantage in terms of market share?

• Decreased brand recognition

• Increased brand recognition and stronger industry position

• Reduced customer base

• Higher employee turnover

Which strategy involves creating new products or services that meet customer needs in unique ways?

• Branding

• Customer service

• Innovation

• Cost leadership

What advantage does a company gain by providing exceptional customer service?

• Higher employee turnover

• Stronger customer relationships and loyalty

• Reduced market share

• Increased production costs

How does branding contribute to a company's competitive advantage?

• By reducing product quality

• By limiting market reach

• By creating trust and recognition among customers

• By focusing solely on cost reduction