Please read chapter10 and 11 then answer the questions: 

Chapter 10. Creating and Capturing Value in the Value Chain

Cooperation between firms

Explain how cooperation between firms can help in creating value. Give examples and comment on examples given by your class members.

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Chapter 11. Strategic Management in a Changing Environment

Competence traps

Explain why success at exploitation often causes companies to become inwardly focused and rigid and to fall into “competence traps.”  Give examples and comment on examples given by your class members.  If you give a little thought you might find that almost every business falls into this trap by thinking, “if it is not broken, don’t fix it.”

Explanation & Answer length: 1 Page2 attachmentsSlide 1 of 2

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UNFORMATTED ATTACHMENT PREVIEW

Chapter 10: Creating and Capturing Value in the Value Chain Chapter 10 Creating and Capturing Value in the Value Chain 10.1 Introduction The focus has been on how competition among incumbent firms and the advantages they might have over potential entrants have an impact on profitability of incumbent firms. This chapter extends the analysis to the value chain in which the industry is embedded. 10.2 Value Creation, Value Capture, and Buyer or Supply Power In keeping with the framework for industry analysis, we are interested in how the characteristics of segments in the value chain and the links among them affect the division of value (PIE). We want to identify what determines the value that the manufacturing segment, the retailing segment, and the final consumers in this chain each capture. The value extraction problem faced by the incumbents

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