BU415 Chapter 2: Chapter 2.docx
Document Summary
Sustainable competitive advantage financial performance that consistently outperforms industry average. Operational effectiveness performing the same tasks better than rivals perform them. Fast follower problem exists when savvy rivals watch a pioneer"s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate. Strategic positioning performing different tasks than rivals, or the same tasks in a different way. Inventory turns inventory turnover number of times inventory is sold or used during the course of a year; a higher figure means that a firm is selling products quickly. Straddling attempts to occupy more than one position, while failing to match the benefits of a more efficient, singularly focused rival. Imitation-resistant value chain a way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role.
