Chapter 4 Assignment

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Chapter 4 Assignment 1) Four test that should be used to measure the competitive power of a company’s resource strengths are: • Is the resource really competitively valuable? All companies possess a collection of resources and competencies; some have the potential to contribute to a competitive advantage, while others may not. • Is the resource strength rate, is it something rivals lack? Companies have to guard against prideful believe that their core competencies are distinctive competencies or that their brand name is more powerful than the brand names of rivals. • Is the resource strength hard to copy? The more difficult and the more expensive it is to imitate a company’s’ resource strength, the greater its potential …show more content…

• Try to make up the internal cost disadvantage by reducing costs in the supplier or forward channel portions of the industry value chain-usually a last resort. • Redesign the product and / or some of its components to facilitate speedier and more economical manufacture or assembly. • Invest in productivity-enhancing, cost-saving technological improvements. • Relocate high-cost activities where they can be performed more cheaply. 5) Three strategic moves that a firm can make to restore cost parity are: • Pressure dealer-distributors and other forward channel allies to reduce their cost and markups, so a s to make the final price to buyers more competitive with the prices of rivals. • Work closely with forward channel allies to identify win-win opportunities to reduce costs. • Change to a more economical distribution strategy including switching to cheaper distribution channels or perhaps integrating forward into company-owned retail outlets. 6) True. In using both the industry and competitive analysis and the evaluations of the company’s own competitiveness mangers can pinpoint the precise things they need to worry about and set an agenda for deciding what actions to take next to improve the company’s performance and business

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