BUS 478 Chapter 5: Building competitive advantage through business-level strategy

302 views3 pages

taupeferret299

3 Mar 2012

School

Simon Fraser University

Department

Business Administration

Course

BUS 478

Professor

Larry Wosk

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Chapter 5: building competitive advantage through business-level strategy. Overview: how a company selects and peruses a business model that will allow it to compete effectively in an industry and grow its profits and profitability. Business model: to create a successful business model, business must optimize competitive positioning. Competitive positioning: managers must choose a set of business-level strategies that work together to give a company a competitive advantage over its rivals. Formulating a business model: must first define: Customer needs: desires, wants, or cravings that can be satisfied by the means of the attribute of a product. Product differentiation: the process of designing products to satisfy consumers" needs. A company obtains a competitive advantage when it creates, makes, and sells a product in a way that better satisfies customer needs that its rivals. Here is where the four business blocks of competitive advantage come to play, superior innovation, quality, efficiency, and consumer responsiveness.

Related Questions

The difference between a company's strategy and a company's business model is that

A)a company's strategy is the plan for achieving strategic objectives while its business model is the plan for achieving financial objectives.

B)the strategy concerns how to compete successfully and the business model concerns how to operate efficiently.

C)a company's strategy is management's game plan for realizing the strategic vision whereas a company's business model is the game plan for accomplishing the business purpose or mission.

D)strategy relates broadly to a company's competitive moves and business approaches (regardless of the financial outcomes it produces) while the term business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from a profit perspective.

E)a company's strategy concerns how to please customers while its business model concerns how to please shareholders