MGCR 423 Lecture Notes - Lecture 3: Competitive Advantage, Imitation, Value Chain
Document Summary
Firms achieve competitive advantage when their core competencies are effectively acquired, bundled and leveraged. Over time, the benefits of any strategy can be duplicated by competitors. By studying external organization, firms identify what they might choose to do. With the internal environment, firms identify what they can do. Value is measured by product performance characteristics and product attribute. Resources, capabilities and core competencies + building core competencies. Value chain analysis: shows how a product moves from the raw-material stage to the final customer. Allows a firm to understand the parts of its operations that create value and those that do not. Understand their cost position identify multiple means that might be used to facilitate implementation of a chosen business-level strategy. To be a source of competitive advantage, a resource/capability must allow the firm to perform: a(cid:374) a(cid:272)ti(cid:448)ity i(cid:374) a (cid:373)a(cid:374)(cid:374)er that is superior to the (cid:272)o(cid:373)petitors" (cid:449)ay, a value-creating activity that competitors cannot compete against.
