Have you got the Edge?

Analyzing Competition and Business Strategy

Part 1: Strategy & Decisions

Task 1: Strategic Response

Your company’s main competitor has just cut their prices by 20%. What is the best strategic response? Choose one.

Teacher's Note: While this is subjective, Option C is often considered the best long-term strategy according to Porter (Differentiation). Option B often leads to a "race to the bottom" which destroys profitability for everyone.

Task 2: Categorizing Stakeholders

Classify the following stakeholders into the correct category.

Stakeholder	Category
Rivals
Management
Government
Suppliers

Part 2: Business Vocabulary

Task 3: Definitions

Match the word to the definition.

1. The amount of money a company makes, minus its costs:

2. A company’s sales expressed as a percentage of total industry sales:

3. Power and influence, especially in business:

Task 4: Fill in the gaps

Options: profit margins, market share, retain, fierce, clout, substitute

1. If our are too low, we won't make any money.

2. We need a new strategy to our best staff.

3. For many people, Zoom is a for business travel.

Task 5: Word Formation

Complete the table with the correct form of the word.

Verb	Noun (Thing/Person)	Noun (Concept)	Adjective
Compete	Competitor	Competition	Competitive
Supply		Supply	-
-	-	Profit
Substitute	Substitute		-

Part 3: The Five Forces (Video)

Task 6: Watch and Answer

1. Michael Porter believes competition is primarily a battle for...

2. Suppliers ideally want to be paid less to secure long-term contracts.

3. What did Southwest Airlines' strategy (flying one type of plane) allow it to do?

Part 4: Cause and Effect

Task 7: Matching Cause and Effect

Match the situation on the left with the result on the right.

1. Our main supplier increased prices by 30%...

2. We improved our product quality significantly...