The 5 forces of Porter! *Dun Dun Dun*

Falcon Incorporated’s TV stations cover approximately 6.8 percent of United States television households and all of the 1.3 million television households in Puerto Rico. The company operates eight very high frequency band (VHF) full-power television stations and 16 ultra high frequency band (UHF) full-power television stations, including two stations operated under local marketing agreements. Falcon Inc.’s full-power stations generate 99 percent of net revenue, including the two stations operated under local marketing agreements that contribute 6 percent to net revenue. Programming consists of a specialized series of education-oriented broadcasts and is tailored to meet the discerning palate of college graduates in their 30s. The competitive strategy that best applies to Falcon Incorporated is: A. cost leadership. B. differentiation. C. cost focus. D. differentiation focus.

D

B

add one ‘B’ for me too…

It is D…Falcon is concentrating on their market niche…rather than the whole overall market. Remmember a company could have many competitive advantage strategies implemented at once-and would not be stuck in the middle if they were to use these strategies for different aspects of their business. Here the question wants us to take notice that they are concentrating on the 30 year olds (focus) with a differentiation strategy of educational programming.

You must be out of your Falcon mind.

I’d say D. The bigger question is why exactly this is related to being a finance analyst.

Correct answer was D due to their small segment in the US and their target of college and 30 year olds next one, if you have any post them. We need the practice Parker Partners, incorporated in 1990, is engaged in the research, development, manufacture, marketing, and sale of mobile/wearable computing and communication systems and software and service solutions designed to enhance productivity and improve product management, asset management, and the accuracy, timeliness, and utilization of critical enterprise data. The company offers solutions with software and services. It has achieved a measure of success due to its close proximity to its main customer base which gives it an important advantage compared to its immediate competitors who must pay proportionately more to service the same clientele. During the year ended December 31, 2004, Parker Partners began marketing its mobile/ wearable hardware solutions in the northeast. The product line is a family of mobile wireless Web panels that can be used either as stand-alone handheld personal computers (PCs) or as displays for an MA system, a laptop, or a conventional PC. The competitive strategy that best applies to Parker Partners is: A. cost leadership. B. differentiation. C. cost focus. D. differentiation focus.

boom shakalaka. i think the fact that it is only shown in 6.8% of homes means it is in a pretty “focused” area. Also the 100% coverage in Puerto Rico is another sign of focus.

sustainability…pink…analysts have to identify sources of it if a company cannot sustain their growth rate, return, sales, market share, competitive advantage, etc… they are as good as a bet as Charles Barkley betting on black

hmm… C - cost focus

C

ilvano…numbers do not mean anything…if that 6.8% stretches from los angeles to new york it is not pretty focused…puerto rico can be one I think this one is cost focus…they are “focusing” on the northeast and are in close proximity which allows them to cut costs?? Right deep ??

miker2800 Wrote: ------------------------------------------------------- > sustainability…pink…analysts have to identify > sources of it > > if a company cannot sustain their growth rate, > return, sales, market share, competitive > advantage, etc… they are as good as a bet as > Charles Barkley betting on black @ss-balls is my response. And C for the latest question.

Just give me some 1-stage DDM questions :wink:

i always choose red

The answer is C - cost focus due to their targeted small geographic locations and achieving a cost advantage by being close to their customers.

good questions, there is a chance we’ll learn competitive strategy by June

They love testing this material, so lets learn it by June 7th :slight_smile:

best way to learn is to post questions :slight_smile: if anybody has them it would be great for all of us. If we all chip in, the AF crew will own the exam on june 7th :smiley: