MGCR 331 Chapter Notes -Freshdirect, Personalization, Walmart

• School: McGill University
• Department: Management Core
• Course: MGCR 331
• Professor: Yasser Rahrovani

Document Summary

Organizations can look for sustainable competitive advantage through operational effectiveness or more likely through differentiation. Use it to create or strengthen resources that can provide sustainable competitive advantage. Resources have to be different (valuable, rare, imperfectly imitable, non- substitutable) Resources can be ways of doing things, assets, capabilities, skills, competencies, and more. Discussed how freshdirect gained advantage from its it-enabled business model. Brand (lowers search cost, inspire trust, viral mktg) Threat of new competition: profitable markets that yield high returns will attract new firms. This results in new entrants, which eventually will decrease profitability for all firms in the industry. Threat of substitute products or services: the existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Bargaining power of customers (buyers): the ability of customers to put the firm under pressure. Intensity of competitive rivalry: major determinant of the competitiveness of the industry.