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1.
There are many ways a company can build a sustainable competitive advantage in its industry. Which of the following is not one of them?
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None of the above. All of these approaches can build a sustainable competitive advantage.
2.
How can a low-cost producer achieve a barrier to entry?
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All of the above. These are all ways that a low-cost producer can achieve barriers to entry.
3.
Harley-Davidson has what type of economic moat?
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Intangible assets. Harley's brand is an intangible asset that is a sustainable competitive advantage.
4.
In the language of companies, what are switching costs?
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Expenses incurred to switch over from one product to another. From the company's point of view, these can be a very positive thing.
5.
Which of the following is unlikely to be an attribute of companies with efficient scales?
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They are in a rapidly growing market. Being in a rapidly growing market normally means that there is a lot of room for new competitors to come in, and that is not a part of the efficient-scale universe.
6.
A company can achieve the 'network effect' simply by more people using its product or service.
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True. As more people use it, its value to the marketplace grows.