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In: Business and Management

Submitted By zuol
Words 3292
Pages 14
Chapter 2
Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers

True/False Questions

1. Financial performance that consistently outperforms industry averages is known as operational effectiveness.
False; Easy


2. According to Michael Porter, the reason so many firms suffer aggressive, margin-eroding competition is because they have defined themselves according to strategic positioning rather than operational effectiveness.
False; Moderate

3. When technology can be matched quickly, it is rarely a source of competitive advantage.
True; Easy

4. According to the resource-based view of competitive advantage, if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that are valuable and can be substituted easily.
False; Moderate


5. Firms that build an imitation-resistant value chain develop a way of doing business that others find difficult to replicate.
True; Easy

6. Firms like Google, Hotmail, Facebook, and Skype have built multimillion member followings mainly due to aggressive spending on advertising and branding campaigns.
False; Easy

7. A trademark is the symbolic embodiment of all the information connected with a product or service of a firm.
False; Easy


8. Businesses benefit from economies of scale when the cost of an investment can be used in serving a niche customer base.
False; Easy

9. The scale of technology investment required to run a business can act as a barrier to entry by discouraging new, smaller competitors.
True; Easy

10. Dominant firms with low switching costs can be rapidly overtaken by strong rivals.
True; Moderate

11. Commodities are products or services that vary across multiple vendors.
False; Easy

12. Network externalities exist when a product or service becomes…...

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