Problem 1. Porter (1985) noted that a firm is "stuck in the middle" if they try to both differentiate their products/services and compete on low-cost. However firms like Wal-Mart, Southwest Airlines, and Home Depot, use exactly that strategy and are quite successful. Why? Or coudl they be more successful is they got out "of the middle"?
Problem 2. Describe the risks associated with horizontal integration, vertical integration, concentric diversification, and conglomerate diversification. Why is a concentration strategy considered less risky?
Problem 3. What is the difference between a merger and an acquisition? Which seems riskier? Why?
Problem 4. Why would a firm use joint ventures, strategic alliances, and outsourcing? How do these strategies reduce risk?
Problem 5. Mergers and Acquisitions are once again becoming "popular" - explain!