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To Diagnose the Sources of Competitive Advantage, Domestic or International

question 9

Essay

To diagnose the sources of competitive advantage, domestic or international, Michael Porter divides the chain of activities performed by a firm into distinct groups. Describe Porter's value chain concept and explore its relevance to international strategy.


Definitions:

Break-even

The point at which revenue received equals the costs associated with receiving the revenue, resulting in no net profit or loss.

Net Operating Income

Earnings before interest and taxes, representing the profit generated from normal business operations.

Sales Dollars

The total monetary value of sales transactions made by a business within a specific period.

Break-even

The point at which total revenues equal total costs, resulting in no profit or loss.

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