GMS 200 Lecture Notes - Lecture 7: Competitive Advantage, Strategic Management

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Horatio Morgan

Document Summary

Strategy in a world of globally competitive business. Some companies who have these qualities do not always succeed. The winners most likely have a more effective strategy but what is a strategy. Without a strategy you"ll try anything porter . To understand strategy, you have to understand the notion of competitive advantage. Competitive advantage: it is operating with an attribute or combination of attributes that allows it to outperform its competitors. Cost and quality: where strategy drives an emphasis on operating efficiency and product or service quality. Knowledge and speed: where strategy drives an emphasis on innovation and speed of delivery to market for new ideas. Barriers to entry: where strategy drives an emphasis on creating a market stronghold that is protected from entry by others. Financial resources: where strategy drives an emphasis on investments or loss absorption that competitors can"t match. Technology: where strategy drives an emphasis on using technology to gain operating efficiencies, market exposure, or customer loyalty.