1. What are the primary implications of the material discussed in this chapter for strategy formulation?

2. When is a companys competitive advantage most likely to be sustained over time?

3. It is possible for a company to be the lowest-cost producer in its industry and simultaneously have an output that is the most valued by customers. Discuss this statement.

4. Why is it important to understand the drivers of profitability as measured by the return on invested capital?

5. Which is more important in explaining the success and failure of companies: strategizing to create valuable resources, or luck