Answer 2 discussion questions and write a 2-3 page paper from uploaded Research

Answer 2 discussion questions and write a 2-3 page from uploaded information - Research Paper Example Therefore, one strongly believes that it is possible that there are customers who visit these two stores, as evident from the example indicated herein. Chapter 12: Discussion Question 9 For instance, if one would like to establish a new restaurant, the restaurant or food service industry should be evaluated in terms current status and condition of the market. As such an external analysis should be made of the market’s customers, competitors, suppliers, and potential partners (Spulber, 2009). In addition, the potential entrant must be able to assess and comprehensibly evaluate current competitors that are firmly entrenched in the market, their core competencies, strategies applied, and the clientele that they specifically cater to. Therefore, the strategies that must be designed to effectively compete with incumbent firms are as follows: (1) determine the strengths and weaknesses of these competitors. As emphasized, â€Å"companies should concentrate their strength against the weaknesses of their competitors† (Spulber, 2009, p. ... Likewise, if the incumbent firms exhibit cost advantages, the potential entrant could design strategies which include â€Å"process innovation, increased efficiency, outsourcing, and contracts with customers† (Spulber, 2009, p. 372). In addition, the potential entrant could also apply entry strategies to address differentiation advantages through focusing on product innovation and tailoring the services or products offered to the needs, demands, and preferences of customers. Also, the potential entrant could apply entry strategies which address transaction advantages of competitors through â€Å"innovation in transaction technology, development of new forms of transactions, and creation of new combinations of buyers and sellers† (Spulber, 2009, p. 372), as deemed necessary. Therefore, expected challenges that the potential entrant could face include: immediate response and reaction from the competitors; being recognized in the market through the application of strategie s involving the 4Ps; as well as in designing the most appropriate and effective entry strategy according to the core competencies, advantages, and strengths which would cater to the needs, demands, and preferences of the clientele. As such, selection of the most appropriate entry strategy would actually depend on the positioning of the potential entrant; meaning, to which particular market segment they aim to serve. This would specifically determine the competitors or incumbent which the potential entrant should assess; and apply the most needed entry strategy depending on the core competencies and advantages exhibited by these competitors. 2. Essay: What are the key cost drivers and determinants of cost advantage needed by managers when using a price leadership strategy? Students should be