BUSI 2400 Lecture Notes - Lecture 6: Competitive Advantage, Information Technology Management, Big Data
25 Feb 2018
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Document Summary
Sustainable competitive advantage occurs when an organisation uses organisation-specific resources to accomplish something its rivals cannot. A: you(cid:396) (cid:272)apa(cid:271)ilities o(cid:448)e(cid:396)lap (cid:449)ith (cid:455)ou(cid:396) (cid:272)usto(cid:373)e(cid:396)"s (cid:374)eeds, (cid:271)ut (cid:455)ou a(cid:396)e out of (cid:396)ea(cid:272)h fo(cid:396) (cid:455)ou(cid:396) competitors. Efficiency trap: when 2 competitors have similar things to offer, so the only way left to compete is reduce their prices, so they both start reducing them, and they go broke. Analytics and segmentation is used in area b to determine who among them could be swayed by a good pitch and then target them. Our interest is in how to leverage technology in order to increase the size of area a and keep it there. Competitive advantage: a superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities.
