Exam 3 Notes.docx - Key Terms Asset specificity \u8d44\u4ea7\u4e13\u7528\u6027\u2014the extent to which the assets required to produce a good or service can be redeployed

Exam 3 Notes.docx - Key Terms Asset specificity...

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Key TermsAsset specificity资产专用性—the extent to which the assets required to produce a good or service can be redeployed for some other purpose Competitive advantage—A firm’s ability to create a large gap between the amount its customers are willing to pay and the costs it incur. To create this advantage, a firm must perform activities more effectively or distinctively than its industry rivals.Corporate strategy—The framework a firm uses to decide the scope of businessesit should operate in, as well as whether and how to structure the relationshipsbetween these businesses, in order to achieve superior returns.Dual competitive advantage—A strategy based on providing a superior product for which there is a higher willingness to pay while achieving a lower cost than the competition.Dual competitive disadvantage—A strategy in which a firm creates an inferior product for which there is a lower willingness to pay while incurring a higher cost than the competition.

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