Question

1. From a value-creation perspective, is it more important for a company to

know where to compete or how to compete? That is, is it more important to play in the right markets or to be the best player in your current markets?

Answer 1

The company can create value by either increasing the customer base of the company or increased sales to the existing customers. There is a limit to which sales can be increased for current customers. In the existing market, being the best player will be difficult due to competition in the market will cost a lot to the company to compete and become the best player. However, if company choose the right market the and expand its customer base. It will be much easier to sell to right customer and value of can be enhanced substantially.