Agenda. . (30 Minutes) Strategy (Chapters 12)(30 Minutes) Entry Modes (Chapter 14)(30 Minutes) Case: Microsoft Outsourcing Xbox(10 Minutes) Break(40 Minutes) Final Exam Review. Value can be Created through Low-Cost or Differentiation. Strategy Basics. . Strategy: Management actions to increase (long term) firm profitsValue: Difference between customers\' willingness-to-pay (WTP) and cost Value is convertible to profit.