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Question 1: Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position vis-Ã - Porter's five forces?
Option 1: Supplier power is increased because suppliers will be able to charge higher prices for their inputs.
Option 2: It helps a firm to deal with supplier power and reduces buyer power since buyers lack comparable alternatives.
Option 3: By increasing a firm's margins, it avoids the need for a low cost position.
Option 4: Firms will enjoy high customer loyalty, thus experiencing less threat from substitutes than its competitors.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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