Question : 41) Walmart refuses to stock CDs bearing parental advisory stickers : 1353497

41) Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of:

A) buyer power.

B) supplier power.

C) threat of new entrants.

D) threat of substitute products.

E) access to distribution channels.

42) Several factors can create intense rivalry among firms. These factors include all of the following factors except:

A) firms focus on market share at the expense of others.

B) firms feel pressure due to fixed costs and produce at full capacity.

C) lack of differentiation in products and services.

D) upward pressure on prices and profitability.

E) absence of switching costs for customers.

43) Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company’s superfast Opteron microprocessor for its new laptop computer. Toshiba’s representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel’s role in this scenario, which of the following elements of the five forces model is evident here?

A) barriers to entry

B) bargaining power of suppliers

C) bargaining power of buyers

D) threat of substitute products

E) threat of new entrants

44) Porter’s four generic strategies for achieving competitive advantage are:

A) price determination, cost leadership, product differentiation, distribution savings.

B) cost leadership, product differentiation, cost challenger, product challenger.

C) price leadership, product differentiation, price challenger, cost differentiation.

D) cost leadership, product differentiation, cost focus, focused differentiation.

E) cost leadership, product differentiation, consumer differentiation, focused differentiation.

45) Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart’s entry into Mexico, Mr. Martínez notes, “I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?” Which strategic principles are evident in this comment?

A) Walmart’s buyer power and cost leadership

B) Walmart’s barriers to entry and differentiation

C) Walmart’s loose bricks and switching costs

D) Walmart’s focused differentiation and supplier power

E) Walmart’s discount policies for customers

46) Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette’s global marketing effort of MACH3?

A) cost leadership

B) differentiation

C) cost focus

D) focused differentiation

E) consumer focus

47) Maytag has been called “the Rolls-Royce of washers and dryers.” Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of:

A) cost leadership.

B) differentiation.

C) cost focus.

D) focused differentiation.

E) consumer focus.

48) Germany’s Mittelstand companies have been extremely successful pursuing:

A) cost leadership.

B) differentiation.

C) cost focus.

D) focused differentiation.

E) cost differentiation.

49) Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?

A) cost leadership

B) differentiation

C) cost focus

D) focused differentiation

E) cost differentiation

50) Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter’s generic strategies framework, such companies might be said to be pursuing competitive advantage via:

A) cost leadership.

B) differentiation.

C) cost focus.

D) focused differentiation.

E) consumer differentiation.