Short Answer questions

QUestion 18 What is vertical differentiation? What is a way that Ben & Jerry's is vertically differentiated from competitors? What is horizontal differentiation? What is a way Ben & Jerry's is horizontally differentiated from competitors? Explain your answer. Question 19 Why does Coca-Cola offer geographic exclusivity to its bottlers? Why are the terms of Coke's contracts with bottlers typically perpetual? Why does Coke require that its bottlers not sell competing Pepsi products (e.g. a Coke bottler selling Coca-Cola Classic cannot sell Pepsi Cola)? Give an example of contract terms in a different industry that serve a purpose similar to any of the contract terms above. Question 20 Define economies of scale and economies of learning, and provide an example of each. Why are they are important for strategy? Question 21 Suppose that production in a given industry requires a factory. The degree to which this constitutes an effective barrier to entry depends on the characteristics of the required factory investment. For example, if building an effective factory requires expensive land or equipment, then entrants will need to raise large amounts of capital, making the necessity of a factory a more effective barrier to entry. Describe and explain two other characteristics of the required factory investment that would make it a more effective barrier to entry. Question 22 How would barriers to exit factor into a five-forces analysis?