Question 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).

Question 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.

Question 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.

Question 4

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

Question 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.