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1. Is the industry or industries in which the firm operates conducive to abnormally high rates of return?

2. Does the firm have a competitive advantage?

3. If the firm has a competitive advantage

a. What is the competitive advantage and how did the firm obtain it?

b. How is the firm exploiting it?

c. How could the firm extend its competitive advantage?

4. If the firm does not have a competitive advantage, what consequences has it suffered?

5. Has the firm attempted to build a "moat" around itself?

6. If the firm has attempted to build a moat

a. has the moat allowed the firm to maintaining abnormally high rates of return? Why or why not?

b. Do you anticipate that the moat will allow the firm to earn abnormally high rates of return in the future? Why or why not?

7. If the firm has not attempted to build a moat, what consequences as the firm experienced?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9158325

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