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Competitive Advantage And Disadvantages Of Chester F73524

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COMPETITIVE ADVANTAGES AND DISADVANTAGES As members of Chester F73524, we see ourselves as the biggest player in the low-tech industry. This is a direct result of the competitive advantage that we possess. By making heavy investments in fixed assets early in the simulation, we have been able to create a low tech product to be reckoned with; one that is characterized by sizeable contribution margins, high accessibility and awareness, and a premium price. As a result, we have achieved an industry-high contribution margin of 45.3%. Furthermore, through our investments in the TQM module and automation, we have been able to greatly reduce the production costs associated with producing our low tech product, Cake. Decreasing the R&D cycle time has allowed us to have our product in the ideal position for a longer time. We believe our competitive advantage is sustainable for the rest of the simulation, as we plan on keeping our low tech product for the entire length of the game. Thus, we will capitalize on the benefits of having low labour costs as a result of our high level of automation, and on the benefits of having low material, overhead, and administrative costs, resulting from our investments in TQM. Nevertheless, like any realistic business, we are subject to competitive disadvantages. As we enter the next round, we face a dramatically decreased high tech market share. This is largely due to our failure to account for our improved R&D cycle time, causing us to revise Crypto

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