Probelm Set

I’m studying for my Business class and need an explanation.

1. Nora’s Nicest Knick Knacks has sold a variety of products to hundreds of small retailers. Over time, she has added distributers who have a talent for finding more retailers for Nora. Now, over half of her sales go through just two of these distributers. Rather than making periodic orders as stock gets low, these distributers make only a few large purchases each year. How can these aspects of her buyer relationships affect how much of the value she creates that she gets to capture?

2. Amplitude Investments offers a variety of mutual fund products for investors with different preferences. When they develop a new product for an under-served niche, they find out that their competitors will imitate them within a few months. Is investigating and developing new products going to be profitable for Amplitude?

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