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1.Why does each generic business model require a difficult set of business-level strategies? Give examples of pairs of companies in: (a) the computer industry; (b) the electronics industry; (c) the fast-food industry that pursue different types of business models.
2. How do changes in the environment affect the success of a company's business model?
3. What is the value creation frontier? How does each of the four generic business models allow a company to reach this frontier?
4. How can companies' pursuing cost leadership and differentiation lose their place on the value frontier? In what ways can companies regain their competitive advantage?
5. What strategies does a company need to develop to become a broad differentiator? In what ways does this provide the company with a competitive advantage over cost leaders? Over differentiators?
6. Why is strategic-group analysis important for superior competitive positioning?
7. What are some of the reasons companies lose control over their business models, and thus their competitive advantage, over time?
Suggest two reasons why it is necessary for business organizations to act ethically, and provide support for your rationale.
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