Management MGT 100 Lecture Notes - Lecture 13: Switching Barriers, Sunk Costs, Competitive Advantage

• School: WUSTL
• Department: Management
• Course: Management MGT 100
• Professor: Kiousis Konstantina

Document Summary

Competitive advantage is reflected in superior economic performance compared to rivals. Sometimes strong macroeconomic forces mask how much performance is a function of fir. To achieve a sustainable competitive advantage, a company must: Have a strong offense by setting and achieving an objective to attain a dominant ma. Develop a strong defense in order to protect the firm"s returns from the effects of co. A firm"s market position is the difference between the value the firm offers and the firm"s. Effective competitive positioning means first offering a product whose characteristics matc. Willingness to pay: the highest price a customer is willing to pay in absence of a com. Economic contribution: product"s value to customer - cost the firm incurs to product and s. A differentiator invests in offering high value (d) Cost leader: has the lowest costs compared to the competition (lc)