3.8.2 Strategic positioning: choosing how to compete

• Strategic positioning is about choosing how a business will compete in the market to achieve a sustainable competitive advantage
• Cost leadership focuses on creating unique and superior product features.

  False
• Porter's Five Forces helps businesses understand competitive dynamics
• Resource Capabilities refer to tangible and intangible assets
• Resource capabilities focus on providing a competitive advantage
• Porter's Generic Strategy of Focus targets a specific segment
• Market needs refer to the essential desires of customers that a product or service can satisfy.

  True
• Focus groups provide rich qualitative insights but have a small sample size and potential bias


  True
• The cost leadership strategy aims to create unique and superior product features to build brand loyalty

  False
• Differentiation aims to offer products that are perceived as different and superior
• The focus strategy targets a specific market
• Core competencies are specialized skills and capabilities developed over time
• Resource capabilities provide a competitive advantage if they are valuable, rare, and difficult to imitate.

  True
• The key difference between cost leadership and differentiation is their focus on minimizing costs versus creating unique products.

  True
• Arrange Porter's Five Forces in their logical order

  1️⃣ Threat of New Entrants

  2️⃣ Bargaining Power of Suppliers

  3️⃣ Bargaining Power of Buyers

  4️⃣ Threat of Substitute Products/Services

  5️⃣ Competitive Rivalry Among Existing Firms
• Match the method for evaluating market needs with its advantage:

  Surveys ↔️ Large sample size

  Focus Groups ↔️ Rich qualitative insights

  Market Research Reports ↔️ Broad industry overview

  Social Media Analysis ↔️ Cost-effective feedback
• Which company excels at meeting market needs with innovative products and user-friendly designs?

  Apple
• What is the primary competitive advantage of the cost leadership strategy?

  Lowest prices
• Porter's Five Forces and SWOT analysis are frameworks used to identify competitive advantages and risks

  True
• Porter's Generic Strategies include cost leadership, differentiation, and focus


  True
• In the fast-food industry, what is the bargaining power of suppliers according to Porter's Five Forces?

  Moderate
• What are resource capabilities in a business context?

  Assets a business possesses
• What are customer preferences in marketing terms?

  Specific tastes and choices
• Cost leadership focuses on minimizing costs to offer the lowest prices in the market.


  True
• Differentiation allows a business to charge premium prices and build brand loyalty.


  True
• Match the competitive advantage or risk with its example:

  Superior Technology ↔️ Apple's innovative product design

  New Market Entrants ↔️ Emergence of low-cost alternatives

  Strong Brand Loyalty ↔️ Customer preference for Apple products
• Steps in the strategic positioning implementation process:

  1️⃣ Clear Communication

  2️⃣ Alignment of Resources

  3️⃣ Cross-Functional Collaboration

  4️⃣ Detailed Action Plan

  5️⃣ Performance Metrics
• Businesses should adapt their strategies based on performance and market feedback.


  True
• Match the strategic positioning approach with its competitive advantage:

  Cost Leadership ↔️ Lowest prices in the market

  Differentiation ↔️ Perceived value and brand loyalty
• Arrange Porter's Generic Strategies based on their competitive advantage:

  1️⃣ Cost Leadership: Lowest prices

  2️⃣ Differentiation: Unique product features

  3️⃣ Focus: Meeting niche market needs
• What may businesses do if supplier power is high to maximize profitability?

  Diversify suppliers
• What are core competencies central to a business's strategy?

  Specialized skills
• What are Porter's Generic Strategies designed to achieve?

  Competitive advantage
• What may a business consider if the bargaining power of suppliers is high?

  Diversifying suppliers
• Surveys offer a large sample size and quantifiable data
• Market needs are the essential desires and requirements of customers
• Businesses using the differentiation strategy charge premium prices and build brand loyalty
• Strategic positioning is how a business chooses to compete in the market
• Match the Porter's Generic Strategy with its competitive advantage:

  Cost Leadership ↔️ Lowest prices

  Differentiation ↔️ Perceived value, brand loyalty

  Focus ↔️ Meeting unique needs of niche market
• Resource capabilities provide a competitive advantage if they are valuable, rare, and difficult to imitate


  True