Identify and Briefly Describe the Four Most Frequently Used Strategic

question 103

Essay

Identify and briefly describe the four most frequently used strategic approaches to achieving a sustainable competitive advantage. Provide examples.

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Definitions:

Sales Commissions

Fees paid to sales representatives as a percentage of the sales they generate.

Traceable Fixed Advertising

Fixed advertising costs that can be directly linked to a specific product, segment, or area of the business.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, used to cover fixed costs and generate profit.

Fixed Manufacturing Overhead

The set costs associated with operating a manufacturing facility that do not vary with the level of production, including salaries of managers and depreciation of equipment.