Introduction

Question 1

Airbus characteristics VS Boeing characteristics

Answer 1

• Airbus: Hub and spoke system; not so much outsourced (15%); enormous airplaines, only in some airports (like Dubaï)
• Boeing: Point-to-point system; more routes -> direct transportation so more efficient; 85% outsourced.

Question 2

definition : strategy

Answer 2

A strategy is an integrated and coordinated set of commitments and actions designed to develop and exploit core competencies and gain a competitive advantage

Question 3

definition : business-level strategy

Answer 3

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by selecting specific product markets and positioning within this market

Question 4

definition : Corporate-level strategy

Answer 4

A corporate-level strategy specifies actions a firm takes to gain a competitive advantage by making optimal make or buy decisions

Question 5

What are above-average returns? (result from a competitive advantage)

Answer 5

returns in excess of what an investor expects to

earn from other investments with a similar amount of risk

Question 6

What affect the price determination? (3 things)

Answer 6

The market competition, the firm’s cost structure and the perceived benefit of the product