Business Strategy: Checkpoint 1

Quick checkpoint - five questions on strategy, five forces, generic strategies, moats and first movers.

Question 1 of 5 According to Michael Porter, what does real strategy require?

Copying competitors' best practices Trade-offs, including choosing what not to do Serving every possible customer Having the largest advertising budget

Strategy means creating a unique position, which involves giving some things up.

Question 2 of 5 Which of these is one of Porter's five forces?

Threat of substitutes Weather conditions Employee happiness Stock market trends

The five forces are rivalry, new entrants, supplier power, buyer power and substitutes.

Question 3 of 5 What is a differentiation strategy?

Having the lowest costs in the industry Offering something customers value and will pay more for Leaving the market Copying a rival's product exactly

Differentiators earn higher prices through quality, brand, features or service.

Question 4 of 5 What is an economic moat?

A durable advantage that protects a company's profits from competitors A tax on imports A type of bank loan A company's head office

Moats include brands, network effects, switching costs and cost advantages.

Question 5 of 5 What does research show about first movers?

They always win Many pioneers fail, and later entrants often gain larger shares Being first is illegal Timing never matters

Execution and learning often matter more than simply being first.

← Back to First-Mover Advantage: Myth or Reality? Next lesson → Disruptive Innovation

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