Final Exam : Midterm Exam Essay

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Zhabrina Salazar Midterm Exam 1. What do the different strategies suggested and how are they related to the theories reviewed in this class (applied to the Elizabeth Arden case)? In other words, how does a contingency theory strategy differ from a VRIN strategy and differ from a game theory strategy for Elizabeth Arden? Clearly and completely articulate the differences and similarities that each of these lenses suggest? Game Theory Game theory strategy deals with actions and reactions between Elizabeth Arden and its suppliers, retailers, and competitors. This makes game theory more difficult, because instead of simply reacting to an inflection point Elizabeth Arden is reacting to others who are able to change their behavior as a response to Elizabeth Arden’s behavior. An example of game theory observed in the case is Elizabeth Arden’s relationship with retailers. Elizabeth Arden and the retailers have their own incentives and goals. Both Elizabeth Arden and the retailers want to sell products and generate revenue. However, their goals may be different when it comes to price per unit and service levels. Because game theory involves negative factors such ambiguity and mistrust, Elizabeth Arden is looking to improve its relationship with retailers by providing them with value added services. This strategy could change the industry and potentially become a VRIN resource. Elizabeth Arden used contingency theory strategy to determine that expanding its brand portfolio was a
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