GMS 200 Chapter 7: Schermerhorn Textbook-Chapter 7

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Franklin Ramsoomair

Document Summary

Competitive advantage: the ability to do something so well that one outperforms competitors: typical sources of competitive advantage include: Cost and quality where strategy drives an emphasis on operating ef ciency and product or service quality. Knowledge and speed where strategy drives an emphasis on innovation and speed of delivery to market for new ideas. Barriers to entry where strategy drives an emphasis on creating a market stronghold that is protected from entry by others. Nancial resources where strategy drives and emphasis on investments or loss absorption that competitors can"t match. Technology where strategy drives an emphasis on using technology to gain operating ef ciencies, market exposure, or customer loyalty. Sustainable competitive advantage: ability to outperform rivals in ways that are dif cult or costly to imitate. The long term aspect of strategy is becoming ever shorter in a world of globalization and changing technologies; the challenges to the strategist become even greater.