Discussion Questions and Case
Questions for Discussion
1. What are three activities or capabilities a firm should possess to support a low-cost leadership
strategy? Use Exhibit 8.2 to help you answer this question. Can you give an example of a
company that has done this?
Exhibit 8.2 portrays the organizational capabilities, the skills, and the value chain to support a
2. What are three activities or capabilities a firm should possess to support a differentiation-based
company that has done this?
3. What are three ways a firm can incorporate the advantage of speed in its business? Use Exhibit
8.5 to help you answer this question. Can you give an example of a company that has done this?
To support speed as the basis for competitive advantage, qualities that a firm must possess
4. Do you think it is better to concentrate on one source of competitive advantage (cost versus
differentiation versus speed) or to nurture all three in a firm’s operation?
A firm that has multiple advantages (cost and differentiation and speed, for example) is
5. How does market focus help a business create competitive advantage? What risks accompany
such a posture?
Companies that use a market focus strategy identify underserved niches and compete in those
The risk of this strategy is that such a company attracts major competitors once the niche
6. Using Exhibits 8.10 and 8.11, describe situations or conditions under which horizontal
integration and concentric diversification would be preferred strategic choices.
According to Exhibit 8.10, the strategies of horizontal integration and concentric diversification
Similarly, according to Exhibit 8.11, horizontal integration makes sense when the firm finds