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Once you have reviewed the cases (Air Asia: The World’s Lowest Cost Airline, Starbucks Corporation, and Harley-Davidson Inc.) answer the following questions:

  • Which corporations exhibited a Differentiation Advantage? Which corporations exhibited a Cost Advantage? Be sure to provide examples for each corporation illustrating the type of competitive advantage.
  • In relation to “cost drivers” What are some of the factors which cause one firm’s unit costs to differ from those of its competitors? Please provide examples.
  • Which competitive advantage is more sustainable Cost Advantage or Differentiation Advantage? Please explain.

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