RSM392H1 Study Guide - Final Guide: Soltyrei, Vise, Confirmation Bias
27 Jan 2013
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Document Summary
Key to outperforming is to establish a difference that delivers greater value. Differentiation arises from both choice of activities and how they are preformed. Activities are basic units of competitive advantage. Strategic positioning = performing different activities from rivals of performing similar activities in different ways. Performed activity + efficiency = cost advantage: performed activity = cost = basic unit of competitive advantage, efficiency = choice of activity = differentiation. Choosing a different set of activities to deliver a unique mix of value. Southwest air caters to price and convenience sensitive customers. Positioning not only about carving out a niche. Inconsistences in image or reputation: arise form activities themselves, limit on internal coordination and control. Types of fit: first-order fit = simple consistency between each activity and overall strategy, second-order fit = activities are reinforcing, third-order fit = goes beyond activity reinforcement to optimization of effect.
