Competitive Advantage

We are in the Rational Model analysis and in particular we in the Strategic Choice phase
When developing a Corporate Strategy the organisation must decide upon which basis it is going to compete in its market
Competitive advantage is anything that gives on organisation an edge over its rivals and which can sustained over time
Micheal Porter
1. Strategies to gain Competitive Advantage
  1. Cost Leadership
  2. Differentiation
    1. The product/service is perceived to provide better ADDED VALUE
  3. Focus (Niche)
    1. Is the company going to compete in the broad market place or it is going to focus on one or more segments/niches of the Industry?
  4. Strategic Direction
    Annotations:
    - Strategic Direction is part of the STRATEGIC CHOICE of the Rational Model. The powerPoint of the Rational Model should be amended to include it and Competitive Advantage
    Attachments:
    - CIMA E2
    1. Market Penetration
      1. Mantain or increase its share in existing Market with existing products
    2. Product Development
      1. Lauching new products in existing Markets
    3. Market Development
      1. Finding new markets for existing products
    4. Diversification
      1. Launching new Products in NEW Markets
      2. Ansoff
2. The adoption of one of those strategies by a business unit is made on the basis of
  1. An Analisys on threats and opportunities of the industry
  2. the general enviroment in which the business operates
  3. An assessment of the unit's Strenghts and Weaknesses relative to competitors
Competitive Advantage can be linked to RESOURCE BASED VIEW and POSITIONING APPROACH
1. Positioning Approach
  1. Adapting the organisation to fit its enviroment
2. Resource Based View
  1. Developing UNIQUE RESOURCES internally

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Competitive Advantage

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	Created by giugam over 11 years ago