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1. Which statement correctly reflects the logic of the integration of cost-leadership and differentiation strategy?

A. it is possible for firms to simultaneously reduce costs and offer differentiation; for example, firms may eliminate activities that are costly but provide limited customer value B. overtime new markets may turn into mature markets; as a result, it does not make sense for firms to consider entering new markets to build profitability

C. firms should take the risk to enter completely new markets by introducing radical technologies that provide much stronger functionalities than any existing products

D. the essence of Southwest Airlines’ strategy is that its offers superior customer service than its rivals so that customers prefer to fly with Southwest

2. Which pair of firms has the greatest market commonality?

A. HP and Microsoft

B. HP and Dell

C. Dell and Microsoft

D. Microsoft and Lenovo

Operation Management, Management Studies

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