1) Explain why do you think a firm must find a concept of the business which is difficult to imitate by the competitors? 

2. What is the relationship between a firm's customers and its business-level strategy in terms of who, what, and how? Why is this relationship important?

3. What competitive dynamics can be expected among firms competing in slow-cycle markets? In fast-cycle markets? In standard-cycle markets?

 

1. A firm must find a business concept that is difficult to imitate by the competitors: it functions as an attribute that allows a business to surpass its competitors (Casadesus?Masanell et al., 2013). This helps a business earn better profits relative to its competitors and increases profit for its shareholders. Therefore business concepts must be challenging, if not impossible, to replicate, thus acting as a competitive advantage. A business concept is not regarded as a competitive advantage if it is quickly replicated or imitated. Consumers prefer to be faithful purchasers of products distinguished in ways that are relevant to them. If their commitment to the company grows, consumer sensitivity to rising prices is diminished. The definition of brand loyalty and price sensitivity protects a business from direct competition. As a result, reputations will maintain the competitive advantage of companies by a distinction strategy.

2. Consumers are the basis for effective business models and can never be overlooked. Effectively handling client relationships lets the company address questions about "who," "what," and "how" (Nandakumar et al., 2010). In consideration of clients, by choosing a business-level plan, the company decides who will be represented, what demands those prospective consumers have that the firm would fulfill, and how those demands will be fulfilled. Besides, companies must please clients with their business plan so that the returns received from customer partnerships are the cornerstone of all businesses. Moreover, the most profitable businesses seek to discover innovative ways of pleasing existing clients or meeting the needs of new clients. Choosing who the target client is that the company plans to act on its business-level approach is a significant decision. Companies split consumers into categories based on discrepancies in the interests of clients to make a decision. Broadly, the needs (what) refer to the advantages and characteristics of the commodity. Effective companies learn how to offer what they want to clients, where they want to. After determining how the company will represent those clients' particular interests, the firm is equipped to decide how to leverage its capabilities and competencies to produce solutions that will fulfill the needs of the intended clients. Core competencies are tools and skills that act as a competitive advantage to the company over its competitors. Firms use key competencies (how) to incorporate value-creating techniques to address the demands of consumers.

3. Competitive dynamics are concerned with the existing rivals' conduct of all businesses vying in the market for favorable positions (Ganesh & Shinde 2010). Business attributes influence the variety of behaviors and responses that firms take when competing in a particular market and the durability of firms' competitive advantages. In slow-cycle markets where competitive advantages can be retained, competitive dynamics allow companies to take action and respond to measures designed to preserve, sustain, and expand their strategic advantages. In fast-cycle economies, competition is nearly frantic as companies create a variety of transient competitive advantages. This focus is essential because companies' benefits in fast-cycle markets are not unique and thus are vulnerable to rapid and comparatively affordable emulation.