1.Please find examples of firms that have sustained competitive advantage by competing on the basis of (1) cost leadership, (2) response, and (3) differentiation. Cite one example in each category and provide a sentence or two in support of each choice. Note that a “99 cent menu” in fast-food chains may not be a good source of sustained advantage since it can be very easily copied.

2.How can a supplier with a lower unit price end up costing the buyer more than a supplier with a higher unit price? Please list at least 6 possible reasons for this situation.