Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

The Internet and E-Commerce: Creating Value Through E-Business Strategies

Multiple Choice Quiz


1	The Garden.com start-up, the opening case in this chapter, failed because
		A)	it spent heavily on content and capabilities that customers did not value.
		B)	its reputation was damaged by rumors that spread via word of mouth.
		C)	it was unable to turn shoppers into buyers.
		D)	all of the above


2	The types of industries that are expected to be most radically transformed by the Internet, according to the text are:
		A)	information-intensive such as financial services
		B)	research-intensive industries such as pharmaceuticals
		C)	manufacturing-intensive such as microprocessors
		D)	all of the above


3	End users are
		A)	usually the AC in B2C.
		B)	the final consumers in a distribution channel.
		C)	likely to have greater bargaining power because of the Internet.
		D)	all of the above


4	One of the utmost threats to supplier power that has materialized because of the Internet is
		A)	Internet technologies cannot easily be imitated.
		B)	the Internet inhibits the ability of suppliers to offer highly differentiated products or services.
		C)	procurement technologies eliminate the need for suppliers.
		D)	the cost of accessing business customers has increased.


5	On the whole, the threat of substitutes is heightened because the Internet:
		A)	lowers switching costs.
		B)	lowers barriers to entry.
		C)	introduces new ways to accomplish the same tasks.
		D)	increases output per unit of cost.


6	All of the following are reasons the Internet increases the intensity of competitive rivalry except:
		A)	the Internet has made it more difficult to imitate the advantages achieved by competitors.
		B)	the Internet makes it more difficult for firms to differentiate themselves.
		C)	the Internet has Acommoditized@ products that previously were regarded as rare or unique.
		D)	the Internet has eliminated the importance of location by making geographically distant products available online.


7	Which of the following is not a way that Internet technologies are being used to improve an overall cost leadership strategy?
		A)	Direct access to progress reports and the ability for customers to periodically check work-in-progress is minimizing rework.
		B)	Online bidding and order processing are eliminating the need for sales calls and minimizing sales force expenses.
		C)	Quick online responses to service requests and rapid feedback to customer surveys and product promotions are enhancing marketing efforts.
		D)	Online purchase orders are making many transactions paperless, reducing the costs of procurement and paper.


8	Which of the following phrases best completes the following sentence: Because of the Internet, firms that utilize a focus strategy have new opportunities to _____________________
		A)	respond quickly to customer requests.
		B)	access niche markets in a highly specialized fashion.
		C)	provide more services and features.
		D)	access markets less expensively.


9	An enormous amount of money was spent promoting Pets.com's brand, but the company ultimately closed during the dot-com downturn. Which of the following was not one of the reasons Pets.com failed:
		A)	it overextended its focus on a market niche and tried to appeal to an overly broad audience.
		B)	it was based on a faulty business model with overly thin margins.
		C)	despite its efforts, the Pets.com marketing campaign was ill-conceived and did not create name recognition.
		D)	its strategy was based on a value proposition that customers did not value.

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