33:620:301 Lecture Notes - Lecture 3: Competitive Advantage, Determinacy

• School: Rutgers University
• Department: Management and Global Business
• Course: 33:620:301
• Professor: D Hamilton

Document Summary

Business mode l: how a company"s strategy will create value for the customer and at the. Two components of the business model: same time, generate revenues that surpass costs to make a profit. Describes the company"s approach to satisfying buyer needs/wants at a price the customer considers to be a good value. Value offered by the firm >= price to the customer. How effectively the company can deliver on the value proposition at a profit. Price charged to customer > cost incurred by the firm to make the value. For a business model to be successful, v >= p and p > c. Strategy : a company"s action plan for outperforming its competitors and achieving. Firms have strategies to improve their financial performance, strengthen their competitive superior profitability position, and gain a sustainable competitive advantage over their market rivals. A company"s strategy needs to have some distinctive element that brings customers in.