11) A furniture dealer offering a wide variety of designs to premium customers exclusively is following an industry-wide cost leadership strategy.
12) Providing the lowest cost for a product or service across an industry can be referred to as focused cost-leadership.
13) Focused differentiation refers to providing a better product or service within an industry segment.
14) A business that selects a differentiation strategy would invariably structure itself around low-cost activities.
15) Porter defines value as the amount of money that a customer is willing to pay for a resource, product, or service.
16) The difference between the value that an activity generates and the cost of the activity is called revenue.
17) A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.
18) A generic value chain consists of five primary activities and four support activities.
19) Inbound logistics constitute a support activity in the value chain of a manufacturing firm.
20) Activities such as collecting, storing, and physically distributing the products to buyers are considered as primary activities in a value chain.