1. Why does each generic business model require a different set of business-level strategies? Give ex- amples of pairs of companies in: (a) the computer industry; (b) the electronics industry; and (c) the fast-food industry that pursue different types of business models. 2. How do changes in the environment affect the success of a companys business model? 3. What is the value creation frontier? How does each of the four generic business models allow a com- pany to reach this frontier? 4. How can companies pursuing cost leadership and differentiation lose their place on the valuefrontier? In what ways can companies regain their competitive advantage?

5. What strategies does a company need to de- velop to become a broad differentiator? In what ways does this provide the company with a com- petitive advantage over cost leaders? Over dif- ferentiators? 6. Why is strategic-group analysis important for su- perior competitive positioning? 7. What are some of the reasons companies lose control over their business models, and thus their competitive advantage, over time?