Week 9 - Strategic Positioning, Competitive Advantage Flashcards
1
Q
What does the five-forces analysis argue?
A
That industry conditions are an important determinant of a firm’s profitability.
2
Q
When does a firm have a competitive advantage?
A
A firm has a competitive advantage when it earns a higher rate of economic profit than the average rate of economic profit of other firms in the same market.
