$1)$ Any management team must understand how it creates value for its customers and decide how to accomplish this goal better than all its competitors. This is a decision about

strategy.

For exciting new products and products with no$$ substitutes, consumers are willing to pay a premium price.

Part $2$

$2)$ Focusing on inventing and commercializing products with unique attributes is a

value leadership $($or product differentiation$)$ strategy.

Part $3$

$3)$ For most$$ mass$-$produced products sold by many$$ competitors, consumers readily find substitutes. An alternative strategy is

cost leadership.

This alternative strategy that improves profitability and ROI through

economies of scale and economies of scope.

Part $4$

$4)$ Usually this means the management team will work on increasing the quantity of output using the same capacity. The fixed cost per unit produced will$$ decrease, and, if price is$$ fixed, then profit will increase. Often cost leadership$($or reduction$)$ is achieved by

reengineering the production process.

Growth can also be achieved by producing similar but not identical$$ products, and this is

cost leadership growth that provides economies of scope.