Question 1. "Firms that seek a cost advantage should adopt a learning curve strategy; firms that seek to differentiate their products should not." Comment on both of these statements.
Question 2. When economies of scale exist, firms with large volumes of production will have lower costs than firms with smaller volumes of production. The realization of these economies of scale, however, is far from automatic. What actions can firms take to ensure that they realize whatever economies of scale are created by their volume of production?
Question 3. Wal-Mart, Timex, Casio, and Hyundai are all cited as examples of firms pursuing cost leadership strategies, but these firms make substantial investments in advertising, which seems more likely to be associated with a product differentiation strategy. Are these firms really pursuing a cost leadership strategy or are they pursuing a product differentiation strategy by emphasizing their lower costs?
Question 4. Is the evolution of industry structure from an emerging industry to a mature industry to a declining industry inevitable? Why or why not?