Trey Bell, president of Big Bells, Inc., strolled into his office exuding great confidence. He was convinced that his company would be able to gain a sustained competitive advantage by implementing its new strategy. This strategy had three components.

First, Big Bells had just introduced a new type of bell, with substantially improved performance. Traditionally, bell clappers are round. Through an intense R&D effort, Big Bells, Inc. found that a flat clapper, with numerous small bumps on it, rings clearer than the traditional round clapper. Though it does not have a patent on this new clapper Big Bells started shipping it last month.

Second, Big Bells is the only firm in its industry that owns both a bell design group (to create bells) and a forge (to manufacture bells), although most of the competing bell companies have joint ventures between their bell design groups and numerous highly skilled independent forges.

Finally Trey believes that Big Bells is unusually skilled at manufacturing custom bells, although the manager of the customized bell segment of the business has had numerous interpersonal disagreements and conflicts with Big Bells customers.

What business level strategy is Big Bells trying to implement?

		Imitation impeding
		Alertness
		Cooperative
		Product differentiation
		Focus
		Low cost leadership
		Vertical integration

How likely is this strategy to generate a sustained competitive advantage?

		Very likely because of its brand name.
		Not likely such a strategy is usually based on intangible attributes.
		Not likely because of managerial disagreements.
		Very likely because such a strategy is typically based on physical features.
		Not likely because such a strategy is typically based on physical features.

 Question 3 

If you predict that it will generate a sustained competitive advantage, indicate impediments to doing so or if you think it will, justify your answer.

		There are no reason not to expect the bell business to be very successful.
		The complexity of the bell would increase its cost, especially the clapper.
		The cost of the bell would be an impediment
		I don't know, but I hope the business does well.
		Managerial difficulties would prevent a sustainable competitive advantage.

For the third part of this question, be sure to use both empirical and theoretical arguments to justify your view.

		The managerial disagreements and the V in the VRIO framework
		Bellerby's awareness of the need for a frenetic-sounding bell, which would be an alertness strategy
		The deviousness of one of the managers which would have been a manifestation of an opportunistic strategy
		The threat of suppliers and five forces model
		The managerial disagreements and the O in the VRIO framework

Answer rating: 100% (QA)

Based on the information provided the businesslevel strategy that Big Bells is trying to implement is product differentiation They have introduced a n... View the full answer