In Analyzing Competitive Advantage, You Will Need to Ask Three

question 16

Multiple Choice

In analyzing competitive advantage, you will need to ask three questions. Among these are:

• A) Cost structure - are you at a cost advantage or disadvantage?
• B) What is your unique selling proposition? What do you have that competitors cannot or will not match?
• C) Competitive offers - how do you compare with competitors on a feature-by-feature basis?
• D) All of the above.

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Definitions:

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that change in proportion to the level of production or business activity.

Fixed Cost

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.