1. A low-cost leader may create entry barriers to potential entrants by continually improving its levels of efficiency. TRUE/FALSE

2. A strategy is a specific action a firm undertakes to improve its current position in the industry, such as reducing price. TRUE/FALSE

3. Firms operating in the same market, offering similar products and targeting similar customers are competitors. TRUE/FALSE

4. Firms pursuing the differentiation strategy typically focus more on process innovation than product innovation. TRUE/FALSE

5. The main purpose of value-chain analysis is to help reveal who are the core competitors of the company. TRUE/FALSE

6. Essentially, there are only two basic ways to create competitive advantages in a competitive market: cost and uniqueness. TRUE/FALSE