21. Supplier power is one of Porter’s five forces, and it measures the suppliers’ ability to influen

21. Supplier power is one of Porter’s five forces, and
it measures the suppliers’ ability to influence the prices they charge for
supplies (including materials, labor, and services).
True False

22. Polaroid had a unique competitive advantage for
many years until it forgot to observe competitive intelligence. The firm went
bankrupt when people began taking digital pictures. Polaroid provides a great
example of Porter’s threat of new entrants.
True False

23. Product differentiation occurs when a company
develops unique differences in its products or services with the intent to
influence demand.
True False

24. Buyer power is the ability of buyers to affect the
price they must pay for an item.
True False

25. Tiffany & Company competes in the marketplace
by offering high-cost custom jewelry. Tiffany & Company is following a
broad market and cost leadership strategy.
True False

26. Porter has identified three generic business
strategies, including focused, broad cost leadership, and switching
strategy.
True False

27. According to Porter’s three generic strategies,
Walmart is following a business strategy that focuses on “broad market and
low cost.”
True False

28. Value chain analysis views a firm as a series of
business processes that each adds value to the product or service.
True False

29. A standardized set of activities that accomplish a
specific task is called a supply chain component.
True False

30. The value chain will group a company’s activities
into two categories: primary value activities and support value
activities.
True False