PHIL 100 Study Guide - Quiz Guide: Netflix, Externality, Competitive Advantage

• School: University of Maryland
• Department: Philosophy
• Course: PHIL 100
• Professor: danmoller

Document Summary

Operational effectiveness is performing the same tasks better than rivals perform them. People can always copy methods and drive down costs, often leads to price wars. Strategic positioning refers to performing different activities than those of rivals, or the same activity in a different way. Best way to achieve sustainability, however you need to use the strategic positioning to find ways to gain sustainable advantage so as to prevent copycats. Competitive advantage vs sustainable competitive advantage- sustainable competitive advantage must control a set of exploitable resources that have four critical characteristics: 1)valuable, 2)rare, 3)imperfectly imitable (tough to imitate) , 4)non. Sustainable competitive advantage involves financial performance that consistently outperforms industry averages. Resource view of the firm concept- a model that sees resources as key to superior firm performance. Supporters of this view believe that organizations should look inside the company to find the sources of competitive advantage instead of looking at the competitive environment.