Consider the following series of independent situations in which a firm is about to make a strategic decision. Decisions

a. Julian Phones is about to decide whether to launch production and sale of a cell phone with standard features.

b. Flint Computers is trying to decide whether to produce and sell a new home computer software package that includes the ability to interface with a thermostat and a refrigerator. There is no such software currently on the market.

c. Maria Cosmetics has been asked to provide a "store brand" facial cream that will be sold at discount retail stores.

d. Jansen Computers is considering developing a special line of computers that can be both a tablet and a computer.

Required

1. For each decision, state whether the company is following a cost leadership or a product differentiation strategy.

2. For each decision, discuss what information the management accountant can provide about the source of competitive advantage for these firms.