For most products, higher prices result in a decreased demand, whereas lower prices in an increased demand. Let d = annual demand for a product in units. P = price per unit. Assume that a firm accepts the following price-demand relationship as being realistic: d=800-10p where must be between $30 and $70.

Value chain analysis is a seeking tool for determining competitive advantage. It uses systematic methods to examine the activities and relationships of the enterprise to find the competitive advantage resources. Benchmarking is an evaluation of their own businesses and the mean to study other organizations.