Some policies favor businesses, A firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing a competitive advantage.
<h3>What is competitive advantage?</h3>
Competitive advantage is factors that allow a company or industry to produce goods and services better, expand or produce more cheaply than its rivals.
A nation's competitiveness in business depends on the capacity of the industry to innovate and upgrade.
Therefore, a firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing competitive advantage.
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Answer:
the average profit from selling a car = $25,500 x 9% = $2,295
the average profit from providing 1 service = $122
customer lifetime value = (Annual profit per customer x customer relationship in years) - customer acquisition cost
the current CLV = $2,295 + ($122 x 8 x 81%) = $3,085.56
if you are able to increase the probability of using the company's maintenance services by 5% (from 815 to 86%), then the new CLV = $2,295 + ($122 x 8 x 86%) = $3,134.36
the difference = $3,134.36 - $3,085.56 = $48.80
Theoretically, you can spend up to $48.80 in the service loyalty program. But this analysis is incomplete, since providing a good service should also increase the possibility of selling a new car to the same customer after 5 years. This should extend the customer relationship for many years. E.g. that has been a major factor in the success of Honda and Toyota.
Answer:
Profit of $3000
Explanation:
The exchange rate of a future contract is usually fixed at the time when the contract is buy 100,000 euros at a futures contract price of $1.22.
The Value in dollars at the time is: $122,000
At the maturity spot rate of the euro is $1.25.
The value of the contract is: $125,000
The difference:
$125,000-122,000
=$3000.
Since the maturity spot rate is higher, there is a profit of $3000 from speculating with the futures contract.
Answer:
<em>B) contradicts the argument and finds that firms that successfully pursue cost leadership and product differentiation simultaneously can often expect to gain a sustained competitive advantage.</em>
Competitive pay is pay that is comparable to or better than the market value of a position.
