More value customers place on a firm's products the lower the price the firm can charge for those products.

All position on efficiency frontier are viable.

Low cost and differentiation are two basic strategies for creating value and attaining a competitive advantage in the industry.

Profitability can be increase by adding value to the product and raise prices, and selling more products in the existing market.

Locating a value-creation activity in the optimal location for that activity can lower the costs of value creation and help the

firm to achieve a low-cost position, or enable a firm to differentiate its product offerings from those of competitors.

Shows all of the different positions that a firm can adopt?

Controls the transmission of physical materials through the value chain, from procurement through production and into distribution.

Value creation activities can be categorize as

Refers to the systematic reductions in production costs that have been observed to occur over the life of a product

It is not easy to pursue since it places a conflicting demand in the company.

Global Standardization Strategy only focuses in increasing profitability.

Which of the following is an example of localization strategy given by the reporter?

It is an example of international strategy that developed innovative new products and then transferred them wholesale to local markets.

Universal needs exist in conventional commodity (gasoline) and industrial and consumer products (smartphones).

The four types of pressure for local responsiveness are: differences in consumer tastes and preferences, differences in traditional practices and structure, differences in distribution channels and host government demands.

It requires a firm to try to lower the cost of value creation.

It is possible to identify multinational firms that find themselves in the fortunate position of being confronted with low cost pressures and low pressures for local responsiveness.

Firms that pursue a global standardization strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects and localization economies, that is their strategic goal is to pursue a low-cost strategy on a global scale.

A global standardization strategy makes most sense when cost pressures are intense and demands for local responsiveness limited, conversely a localization strategy makes most sense when demand for local responsiveness are high but cost pressures are moderate or low.