| Course | EIO-5200 Economic Issues in Organizations |
|---|---|
| Module | Module 4 |
| Paper type | Discussion forum: strategic positioning |
| Length | About 530 words |
| Format | Discussion post with APA 7 citations |
| School | Thomas Edison State University |
| Program | Master of Science in Management |
| Updated | October 2026 |
Free sample paper for EIO 5200 Module 4
Module 4 Discussion: Positioning a House-Call Practice
Worth More, Not Cheaper: Positioning a Mobile Veterinary Practice
Besanko et al. (2017) measure value created as the distance between what a client would pay and what serving that client costs. A firm wins by creating a larger gap than its rivals, through a cost advantage, a benefit advantage or, rarely, both. For a mobile veterinary practice, the choice is not close.
A cost advantage is out of reach. Porter (1985) argued that a firm must choose between leading on cost and differentiating, and that trying to do both usually leaves it stuck in the middle. A house call takes a veterinarian's time on the road between visits, so the practice sees eight pets a day where a clinic veterinarian may see twenty. Its cost per visit, about $205 at full capacity in my Module 1 numbers, will always be above a clinic's. Trying to compete on cost would mean cutting the very thing clients pay for.
A benefit advantage fits. For a specific group of clients, the practice raises willingness to pay well above a clinic's: elderly owners who no longer drive, households with several cats, dogs that panic in waiting rooms and families who want a pet's last moments to happen at home. For them, the alternative to a house call is not a cheaper clinic visit but a difficult trip, a missed day of work or a heavily sedated animal. Suppose such a client would pay $300 for a home visit. Our average charge is $260 and our cost at capacity about $205, so the visit creates about $95 of value: the client keeps $40 and the practice earns $55. A clinic visit priced at $90 and costing $70 creates far less for this client, because once the trip and the pet's distress are counted, her willingness to pay for a clinic visit is barely above its price.
The trade-offs are real. Porter (1996) argued that strategy means choosing what not to do, and our position rules out walk-in urgent care, surgery and price-sensitive clients. It also requires consistent quality: a benefit advantage collapses if one visit arrives two hours late. Our scorecard will therefore track punctuality and client ratings as closely as revenue.
Reply to Marcus
Marcus, your discount gym is a clean example of a cost advantage: no classes, no towels and a few staff per site keep cost per member low, and the price passes most of that saving to members. I wonder how durable it is, since a rival can copy the same stripped-down format quickly. Benefit advantages built on relationships, like ours, are slower to copy; cost advantages built on format need scale to protect them. Does your chain have enough locations to buy equipment more cheaply than a new entrant?
Reply to Priya
Priya, the hospital-at-home program you described shows a benefit advantage that also lowers cost, which the textbook says is rare. Avoiding a hospital bed saves money while patients prefer recovering at home. I would add a caution from our own planning: home visits depend on travel time, so the program's cost advantage may hold only within a tight radius. Has your hospital set a maximum distance for enrollment?
References
Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2017). Economics of strategy (7th ed.). Wiley.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
Porter, M. E. (1996). What is strategy? Harvard Business Review, 74(6), 61-78.
What the EIO 5200 Module 4 instructions ask for
EIO-5200 has eight graded online discussions worth 30 percent of the grade. Each asks for a reasoned initial post that refers to the readings and courteous replies to classmates' posts; the syllabus treats them as a community of learners rather than a quiz. The strategic positioning module, Module 4, covers cost and benefit advantage, value creation and the trade-offs that make a position sustainable. Expect a prompt asking you to choose a position for a firm you know and defend it with the textbook's concepts. The practice and classmates here are composites; your own post should use your organization or one named in the prompt. Discussions in EIO-5200 ask for an initial post and replies that engage classmates' ideas with course concepts.
How the EIO 5200 Module 4 example is put together
The initial post opens with the textbook's definition of value created, then rules out a cost advantage with the practice's own cost figures from Module 1. It argues for a benefit advantage by naming the client groups whose willingness to pay is highest and works through a single client's value split between client and firm. Porter's point about deciding what not to do anchors the trade-offs paragraph, which ties the position to the practice's own measures. Every reply takes a classmate's case seriously, adds a course idea and asks something back. Both replies test the durability of the classmate's advantage.
EIO 5200 Module 4 rubric: what earns full marks
The eight forums share 30 percent of the grade. The forum rewards a post that uses course ideas correctly on a real case with the readings cited, and replies that add rather than agree. In this module, explaining value creation as the gap between willingness to pay and cost, and being specific about the trade-offs a position requires, distinguishes strong posts. A professional, courteous tone in replies is part of the expectation. Posts that show the trade-offs a position requires, and replies that question durability, show the strategic reasoning mentors want. A post that states the house-call practice's position in one sentence before defending it is easier for classmates to answer.
EIO 5200 Module 4 help: mistakes that cost marks
Discussion posts in this module lose credit when they choose "both" cost and benefit advantage without evidence, when they describe a company's strengths without connecting them to value created and when replies only agree. Pick one position and show, with numbers if you have them, why it creates a bigger gap between willingness to pay and cost. Name what the position rules out. In replies, extend or test the classmate's idea and ask a real question. Cite the textbook in the post. A free first sample of your own EIO-5200 Module 4 discussion is available on request. Put a number on value created where you can, and say what your position rules out.
Write yours, or have the desk draft it
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EIO 5200 Module 4 questions, answered
Where can I find a free EIO 5200 Module 4 sample paper?
The mobile veterinary practice discussion above argues for a benefit advantage, works through value created for one client and replies to two classmates.
What is value created in Economics of Strategy?
The difference between what a customer would be willing to pay for a product and the cost of producing and delivering it.
What is the difference between a cost advantage and a benefit advantage?
A cost advantage delivers similar benefits at lower cost; a benefit advantage delivers greater benefits at similar or higher cost.
Why does strategy require trade-offs?
Because activities that serve one position well often conflict with another, so a firm must choose which customers and needs it will not serve.
How many discussions are in EIO-5200?
Eight graded online discussions, worth 30 percent of the grade together.