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More likely to drive sustainable competitive
advantage... - ANSWER-
INTANGIBLE
ASSETS
Concentration ratio - ANSWER-measure of aggregate market
shares of the top
competitors in an
industry
Social Media PESTEL - ANSWER-Political: increasing scrutiny
b/c free speech
& fake
news
Economic: rapid growth, primary
income from ads
Socio-cultural: divisive,
bombarded w/ ads
,Technological: new technologies, regulatory scrutiny (ie,
facial recognition)
Ecological:
n/a
Legal: increasing regulation & legal
hearings
Productivity Frontier - ANSWER-best possible strategic
positions that a firm can
take relating to value &
low cost
*concave
curve
Index levels - ANSWER-(market
share**2)
*Concentrated:
2500+
*Moderately concentration:
1500-2500
Influence costs - ANSWER-source of costs for both
related & unrelated
diversification
PESTEL: Political - ANSWER-*subsidies
*favorable tax policies
*pricing controls
*regulated access
, *grants
*trade controls/import
*restrictions
*tariffs
IMPACT: emerging technologies & encourages R&D, creates or
eliminates barriers to entry
PESTEL Analysis - ANSWER-*identify external macro-factors
that can impact
the firm
*discern trends & predict outcomes to be considered during
strategic planning
process
*extract opportunities & threats that require
mgt attention
PESTEL: Economic - ANSWER-*growth rates
*interest rates
*inflation rates
*cost of capital
*employment levels
*price stability
*currency exchange rate
*disposable & discretionary income
IMPACT: types of goods or services provided, higher ROI
thresholds for capital
project
approvals