Business strategy

Question 1

3 components value proposition

Answer 1

Value creation
Value configuration
Value capture

Question 2

Challenges of cost leadership

Answer 2

• Sustaining low cost over time and across spaces
• Maintain acceptable quality
• Human/ worker rights

Question 3

Challenges differentiation

Answer 3

• Innovation costly and risky
• Costs and pricing must be controlled
• Risk of being too different

Question 4

Challenges focused differentiation

Answer 4

• If too different small market cannot generate revenue

Question 5

Mutual interdependance

Answer 5

companies recognise strategies are not implemented in isolation from competitors actions and responses