Question

which of the following is not a potential disadvantage of a low-cost strategy?

A. Consumer tastes can change over time
B. Firms with a focus strategy can potentially have prices just as low
C. Other firms can neutralize the advantage by cutting prices to the same level
D. Firms with access to better technology can obtain even lower prices.

Answer 1

I'm not 100% sure, but I have a feeling that C is a potential disadvantage.

Since the other companies can lower their prices, this would be a con for a low-cost strategy. So that would make me rule out choice C.

Answer 2

D is very similar, but tech is added to the equation

so D is out too

Answer 3

So its either A or B?

Answer 4

I think its B

Answer 5

yeah I think so, one sec

Answer 6

I'm reading here

http://www.businessdictionary.com/definition/focus-strategy.html

that a focus strategy is basically where you concentrate on a small segment of the market. So I'm thinking that you could have some product that has mass appeal to a bigger piece of the market and it wouldn't be hurt by competitors who focus on the small segment of the market

Answer 7

so I don't see B as a disadvantage

A makes sense because if consumers have a change in taste, then they won't buy the product (no matter how cheap it is)

Answer 8

thanks can u help me with a few more?

Answer 9

@jim_thompson5910

Answer 10

I'll try, but can't guarantee anything

Answer 11

Which of the following best explains why zoos are not affected by the threat of new entrants?

A. Starting a zoo has a high entry cost
B. Customers do not have replacement activities
C. Substitutes for attending the zoo are much lower quality
D. The zoo industry is growing rapidly

Answer 12

@jim_thompson5910 @Cosmichaotic @fateal

Answer 13

what book do u use???

Answer 14

The school didnt give me a book

Answer 15

then anything as a resource????

Answer 16

Yes this: http://media.pearsoncmg.com/pls/products/coco/bus_info_systems_ap/1269149679/presentations/bu_bis_03_splash.html?fromLms=true

Answer 17

I would argue that starting a zoo has a very high entry cost because you not only have to put tons of money into it (to pay for the infrastructure, staff, etc), but you also have to maintain high standards of safety and cleanliness to make sure the guests have a good time.

Also, I would imagine there are also a lot of regulations centered around starting up your own zoo. Stories like this

http://usatoday30.usatoday.com/news/nation/story/2011-10-19/exotic-animal-cover/50832756/1

are probably why regulations have been tightened up

Answer 18

i use these books...will i havent read them yet x3 i use youtube as my teacher :/ im in college....online classes

Answer 19

Thanks two more left :)

Answer 20

My bet (I'm not 100% sure) is that because the costs are so high to start and run a zoo, the city, state or county probably pays for some of the costs. This happens a lot with very expensive projects. So that effectively means the government is sanctioning that zoo as the official place to see animals. This is another subtle and implicit way to bar entry to anyone else who wants to start their own zoo.

Answer 21

The owner of Harriet's Hair Studio to increase customer loyalty by offering free hair trims in between hair-coloring appointments. Which of the five forces in porter's model is Harriet addressing?

A. The threat of new entrants
B. The barging power of suppliers
C. The bargaining power of customers
D. Rivalry

Answer 22

hmm not sure, my initial guess would be A because this is done to drive off new competitors, but I'll have to look into it

Answer 23

then again, it could be rivalry as well

Answer 24

I was thinking A too

Answer 25

I'm stuck between A and D

Answer 26

the suppliers aren't forcing the price drop to 0, neither are the buyers

Answer 27

it could be that the established rivals have more pull over customers (esp if those customers could easily switch)

so they have more incentive to offer free haircuts to the customers who could switch over to rivals

Answer 28

Paul wants to start a landscaping business. An example of a differentiation strategy he might try is__________

A. Advertising nationwide in a variety of gardening magazines
B. Using only trees and grasses that are naturally pest resistant
C. Offering discounts to repeat customers
D. Selling at prices comparable to large home-improvement garden centers

Answer 29

your thoughts?

Answer 30

A or C

Answer 31

those make him different from the other competitors?

Answer 32

I mean D

Answer 33

the only thing I see that would truly make him different is if he used the pest resistant plants

everything else is done by all of his competitors

Answer 34

this is assuming of course that other companies aren't using pest resistant plants

Answer 35

so what would be the answer???

Answer 36

@jim_thompson5910

Answer 37

I just stated it, although I'm not 100% sure