You answered two of my questioned below, but I need to have a more in depth analysis and explanation to each question. For full credit be sure to explain your answer fully. I need to show more evidence of critical analysis and explanations of the points you will be making in the answers to your questions.
Please provide 2 APA references(recent references---2014 on) for each question
1. Larger firms often are confronted with "coordination problems". What are coordination problems and how can the firm create ways to deal with and mitigate these problems?
Coordination problems have been outlined to be among the fundamental issues of economic organizations. Research has been done to analyze this concept critically. In economics, coordination problems refer to the problems related to making many economic activities network together effortlessly to produce economic value.
Therefore, for companies to deal with these problems, economists must be brought into consideration in explaining the workings of existing structures and predict the influence of its changes. More so, the economist is capable of handling the most intricate structural complexities of the firm due to the possession of the central principle and the underlying principle of human behavior. For example, when a supplier publishes exaggerated claims for product, as well as,
when products are not used according to their real characteristics. Thus, this affects all market participants leading to higher costs, lower profits, longer delivery times and lower availability of products. Market participants may increase economic coordination by insisting on cooperation and accurate communication.
2. Competitive advantage is very important for the firm. How does a firm create and preserve competitive advantage? As part of your answer discuss how competitive advantage comes about.
A firm can be said to have a competitive advantage when it is implementing a value creating a strategy that is not simultaneously being utilized by any potential or current competitors. Firms for instance focus mostly on what is valuable, in the sense of exploiting important opportunities that in the long run neutralize threats in a firm's environment. Also, companies gain modest advantage by investing in the rare resource, imperfectly imitable, and products that cannot be strategically equal substitutes among the competitors. A firm has a sustainable advantage when they implement a value creating strategy, but not being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy.
Furthermore, the outlined attributes of achieving the competitive advantage of a firm can be elaborated as the sole indicators of how a heterogeneous and immobile a company's resources are. Success is based on formulating an offering that addresses a real scarcity in the business environment and innovating a way of availing it cheap enough to leave a high margin. Lastly, a differentiation that commands an attractive price or structurally reduced costs of production of a non-differentiated product.