Examlex
According to Michael Porter,_____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.
Accounting Rate of Return
A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.
Incremental Revenue
Additional income generated from a new action or decision, beyond what would have been achieved without it.
Depreciation
The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.
Real-options Analysis
A financial modeling technique for valuing flexibility and decision-making in investment under uncertainty.
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