(1) Is it possible for a company to produce relatively low-cost products and at the same time, for the products to be highly valued by customers? Illustrate your answer with real-life example(s).

(2) Pick a company that has pursued a differentiation strategy and whose sustainability is threatened by substitutes. Suggest TWO ways that the company could respond to the threat.

(3) L'Oral (https://www.loreal-paris.com.hk/) engages in different businesses ranging from makeup, skincare to haircare. Why does L'Oral run different businesses? Explain your answer with reference to the concept of synergy.

(4) Why are strategic alliances popular in many firms competing in the global market? Explain your answer with real-life example(s).

(5) Using a local firm in Hong Kong as an example, identify ONE important resource of the firm and use VRIO framework to evaluate its sustainability.

Thank you so much.