Marketing

a. Explain the general principles of competitive and comparative advantage theories. What is the difference between the two? How does comparative advantage theory differ from neoclassical theory? Much of our modern economics rests on the assumptions of neoclassical theory, yet Hunt and Morgan (1995) suggest there are flaws in this theory. Discuss these flaws and provide examples. b. Some experts have suggested that we need to consider the term: “covert sustainable competitive advantage.” Why? If you have studied SCA (sustainable competitive advantage) in other classes, what is the point of the advantage being sustainable? What would be the point of adding the word “covert” to this concept (hint: think about the nature and value of information in today’s markets)? c. Identify a company which utilizes a comparative advantage centered on one particular marketing concept within the 4P’s framework. How does that company turn this comparative advantage into competitive advantage in the marketplace? How does this competitive advantage result in extraordinary profit for the organization when compared with its competition? In Question 1 Use this article "The Comparative Advantage Theory of Competition" by Shelby Hunt and Robert Morgan" 2. You are the international marketing manager for Samsung’s new Galaxy Note phone division. You have identified several segments of markets within the US who buy this product. Who would buy this? How are Galaxy Note users different than Galaxy S4/S5 or iPhone users? Give me a brief description of each segment. Going back to Chapter 4, you re-examine the works by Geert Hofstede and his various dimensions, you decide you might be able to combine his ideas with the market segmentation approaches in the textbook and extend the segmentation process for the Galaxy Note to the international market. List the primary components of Hofstede’s classification scheme for classifying cultures. Define each component. Comment on the effect that these various elements might play on marketing the Galaxy Note internationally. What other factors might play a part? Finally, what would be the primary international target market segment for this product? Give me a detailed profile description of what the global consumer segment for this product looks like. 3. As a result of NAFTA, tariff barriers have been substantially reduced between the US and Mexico. You are a buyer for Wal-Mart in the automotive parts division with an annual budget of $300MM. You just found a new supplier in Mexico where you can get the same parts cheaper than you can through your current supplier in Japan. After talking to the supplier in Mexico, you realize that he is also sourcing from the same supplier in Japan. How can it be that the products are cheaper from the supplier in Mexico if they are buying from the same Japanese vendor? You wonder if there are side deals, tariff differences or parallel import issues that you have found to be common in dealing with other Asian suppliers. Discuss this problem. Is there an ethical problem in buying from the Mexican vendor?