Midterm Answers Fall 2009

Midterm Answers Fall 2009 - Strategic Management Prof....

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Strategic Management Prof. Rodan Midterm 1 I think that it would be prudent for Alex Sanchez to accept the job offer from Applicons  AG.  I think the lithium ion battery industry is a better industry than the paper industry for several  reasons.  Due to the specific nature of the product, the threat of substitutes is low for the battery  industry.  This is assuming that the battery customers need lithium ion batteries specifically.  In  the paper industry, the threat of substitutes is much higher because the customers can switch  paper products and suppliers a lot easier since there are many more suppliers to choose from.  If Alex chooses Tangent, there is a better chance that even if prices rise the customers in the  industrial segment, which comprises 83% of sales, will still stay with the company due to the  amount of customer service offered to them.  The price of batteries would mostly affect the 
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This note was uploaded on 09/08/2010 for the course BUS 189 at San Jose State.

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Midterm Answers Fall 2009 - Strategic Management Prof....

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