6.

Technological innovation, low-cost production, and the sale of distinctive products are among the
resources and competencies necessary to acquire a competitive edge.

ACME Firm's competitive edge was excellent quality seeds; but, as they changed to a low-cost strategy,
they were unable to maintain their competitive advantage, and as a result, suppliers began to treat it as
if it were any other regular company.

They may still obtain a competitive edge by focusing on CSR activities and developing a brand image that
emphasizes climate change and bird welfare, which can result in increased sales and income.
Alternatively, they can return to high quality if they can pass on the high expenses to customers in the
form of higher pricing.

7. Company’s business strategic positioning involves values defining importance of operation, vision and
promise of company.

Mission of company is; Mission statement: to ensure vigor health and happiness.

Important standards are quality of finished product and quality with in raw material and supply is of
great importance.

Values include customer satisfaction the most important value which ultimately is product quality.

The promise is to offer high quality birdseeds to ensure fulfilment of company’s vision.

8. Four criteria for competitive advantage are:

 Valuable Capabilities: making firm able to exploit opportunities and minimize threats.
 Rare Capabilities: that are not common among the industry players.
 Not Imitable Capabilities: which are costly to imitate by competitors.
 No substitutable Capabilities: hard to find substitute in industry.

So, ACME had Focus strategy as competitive advantage by focus on specifically baby boomers as its
ultimate regular market of customers. Moreover, it had not multiple choices in its supplier but its
growth pleased suppliers to stick with it and provided it with greater power by lowering bargaining
power of suppliers. Though product was commodity type and did not have much of differentiation
options yet it managed to develop quality birdseed that set its product stand out and with buying at
even higher price it charged.

9. Company’s key strategy is following focus Strategy. It also has other strategy;

Market development strategy which it followed from 1984 to expand by selling in smaller urban and
rural communities, expanding its reach from Midwest to Northwest

Another it started selling birdseeds to retailers beyond its pet stores such Walmart, target and Costco.