Read the book and answering the Question of following Chapters .

Understanding Michael porter: the essential guide to competition and strategy. chapter 4 - answer

1. What is “the core?” what are the first two tests of strategy?

2. What is the value proposition? what are the three questions a value proposition answers?

3. Using porter’s question “which customers?” and the examples as a guide, identify what customer group your company targets. is it unique? if so, what differentiates it? if not, what might be a differentiated customer segment your company could pursue, and why?

4. Using porter’s question “which needs?” and the examples as a guide, identify what “needs” your company targets. is it unique? if so, what differentiates it? if not, what might be a differentiated customer segment your company could pursue, and why? try drawing a position map similar to figure 4-2.

5. Using porter’s question “what relative price?” and the examples as a guide, does your company target underserved/over served markets? if so, which is it? if not, what underserved/over served market might your company pursue, and why?

6. Explain why are limits essential.

Chapter 5

1. Why are trade-offs important? Why does porter label them “linchpins”? What are some misconceptions about trade-offs?

2. Explain the linkage porter makes between strategy and a company’s p&l. why is this important?

3. Comment on porter’s discussion re the cost/quality trade-off.

4. Summarize the important points of “choosing what not to do.”