STEN 4980 Chapter Notes - Chapter 1-12: Freemium, Swot Analysis, Critical Role
Document Summary
Competitive advantage: when a firm generates higher profits than its competitors. Market: the industry and geographic area that a company competes in. Unique value: the reason a firm wins with customers or the value proposition it offers to customers, such as low cost advantage or differentiation advantage. Business strategy is defined as a company plan to gain and sustain competitive advantage in the marketplace. This plan is based on the theory its leaders have about how to succeed in a particular market. This theory involves predictions of which markets are attractive and how a (cid:272)o(cid:373)pa(cid:374)(cid:455) (cid:272)a(cid:374) offe(cid:396) u(cid:374)i(cid:395)ue (cid:448)alue to (cid:272)usto(cid:373)e(cid:396)s i(cid:374) those (cid:373)a(cid:396)kets i(cid:374) a (cid:449)a(cid:455) that (cid:449)o(cid:374)"t (cid:271)e easil(cid:455) imitated by competitors. This theory then gets translated into a plan of how to gain competitive advantage. In the business world, scoring is measured by looking at profits generated by each firm. Competitive advantage requires that a firm consistently outperforms its rivals in generating above average profits.
