B5-M5

Question 1

Value chain analysis

Answer 1

• strategic tool

- determines how important the firms value is as perceived by buyers with respect to the market

Question 2

Vertical linkage analysis

Answer 2

-understanding activities of suppliers then firm then customers

Question 3

Cost leadership

Answer 3

Organization seeks to capture market share through maintaining the lowest cost

-more popular for inferior goods

Question 4

Differentiation

Answer 4

Org seeks to capture market share by demonstrating product value

-more common for superior goods

Question 5

Economies of scale

Answer 5

-a firm experiences increasing returns in the long run if a large enough amt of units is being produced

Question 6

Conditions of factors of production

Answer 6

Nation has strong set of factors of production (skilled labor source) that are required in the industry

Question 7

Conditions of domestic demand

Answer 7

Nation’s domestic demand for the product is high

Question 8

Related and supporting industries

Answer 8

Suppliers of material inputs exist within the nation exist within the nation
-nation has competitive advantage if other rival domestic firms that are competitive in the international environment exist

Question 9

Porter’s five forces

Answer 9

1 barriers to entry
2 market competitiveness
3. Existence of substitute products
4. Bargaining power of the customers
5. Bargaining power of the suppliers