Challenged Q 3 – Case Study Example
1) A) The idea is to examine external opportunities and then scaling up on the internal resources so that a competitive advantage can be sustained. 2) A) The obvious answer is that between the firms with similar capabilities, the one which operates in the industry that is attractive has greater chances for economic returns.
3) The reason that firms that are to do with Diamonds get huge profits whereas firms that deal with supplying water do not is that the former is a niche and premium market whereas the latter is a common resource. As the difference between the two is the nature of the product involved, the economic performance is similarly designed.
4) While studying and imitating firms that have competitive advantage usually works, nonetheless the fact that firms need to have their own unique approach towards their business points to the reasons for possible failure if they merely study and copy the business strategy.
5) I would definitely lend him money, though bound by strict legal and commercial guarantees. The reasons for lending money to my friend range from the potential gains from the local investment in a place where there is much scope for a pizza restaurant. And given the fact that my friend proposes to have added advantages to the place in terms of amenities and attractions, the business proposition is definitely worth considering and investing.
7) B) The home front competitiveness is definitely an added advantage when competing in markets that are suited for the same.
8) Recruiting and staffing an international workforce, opening offices in the target countries etc.