According to Michael Porter in his book,Competitive Advantage,a key concept used in analyzing the competitive position of a firm is creating value for
A) buyers that exceeds the costs of production (i.e., margin).
B) suppliers that exceeds the costs of production (i.e., margin).
C) government that exceeds the costs of production (i.e., margin).
D) employees that exceeds the costs of production (i.e., margin).

Question

Quizplus · Accepted Answer

In his book, Competitive Advantage, Michael Porter defines value as the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue, a reflection of the price the product of the firm commands and the quantity it can sell. A firm is profitable when the value it receives exceeds the total costs involved in creating its product or service. Creating value for buyers that exceeds the costs of production (i.e., margin) is a key concept used in analyzing the competitive position of a firm.

According to Michael Porter in His Book,Competitive Advantage,a Key Concept