GMS 200 Chapter 7: chapter 7 GMS.docx

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

Competitive advantages are when firms operate with a combination of attributes that allow it to perform better than their competitors. It is also the ability to utilize resources well so that organizations perform better than the competition. Cost and quality ( strategy places importance on operating efficiency and product or service quality. Knowledge and speed ( strategy emphasizes the importance of innovation and speed of delivery to market for new ideas. Barriers to entry ( strategy that places importance on creating a market stronghold that is protected from entry by others. Financial resources ( strategies that place importance on investments or loss absorption that rivals in the industry are not able to compete against. As competitors will eventually be able to copy a firm"s competitive advantage, companies should focus on establishing sustainable competitive advantages which are those that are difficult or costly to copy or replicate. Strategies are what help firms obtain competitive advantages.