Scribd
Upload
15 views

Strategic Management Assignment: Submitted by

This document discusses strategic management and the building blocks of competitive advantage. It outlines that competitive advantage comes from creating value for customers and sustaining higher profits than competitors over long periods. The four main building blocks are efficiency, quality, innovation, and customer responsiveness. These are interrelated - for example, process innovations can increase both efficiency and quality. The document also discusses the durability of competitive advantage and how speed of imitation by competitors, limits to competition, and industry dynamics can impact it. Finally, it notes some ways companies can avoid failure and sustain competitive advantage, such as focusing on the building blocks, continuous improvement, benchmarking, and overcoming inertia.

Uploaded by

DeviWiliardi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
15 views

Strategic Management Assignment: Submitted by

This document discusses strategic management and the building blocks of competitive advantage. It outlines that competitive advantage comes from creating value for customers and sustaining higher profits than competitors over long periods. The four main building blocks are efficiency, quality, innovation, and customer responsiveness. These are interrelated - for example, process innovations can increase both efficiency and quality. The document also discusses the durability of competitive advantage and how speed of imitation by competitors, limits to competition, and industry dynamics can impact it. Finally, it notes some ways companies can avoid failure and sustain competitive advantage, such as focusing on the building blocks, continuous improvement, benchmarking, and overcoming inertia.

Uploaded by

DeviWiliardi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

STRATEGIC MANAGEMENT

ASSIGNMENT
I
SUBMITTED BY
M. PATCHIAMMAL
II MBA Sec - A
GENERIC BUILDING BLOCKS OF COMPETITIVE
ADVANTAGE
Competitive advantage is a firms ability to outperform its competitors earn
!ig!er profits"#T!e source of competitive advantage is value creation for customers#
Sustained competitive advantage comes from maintaining !ig!er profits t!an
competitors over long periods of time#
T!e four building bloc$s are closely related to one anot!er# Because it
reduces %aste& t!e time spent fi'ing defects& and t!e cost of after(sales service and
support& ac!ieving superior )uality !as an important positive impact on efficiency#
Moreover& insofar as superior )uality is valued by consumers& it increases t!e
companys customer responsiveness# Besides& innovation in bot! products and
processes can en!ance efficiency& )uality& and customer responsiveness# *or
e'ample& process innovations& suc! as Toyotas lean production system& can
simultaneously increase efficiency and )uality# Similarly& t!e ability to rapidly
develop innovative ne% products increases a companys ability to serve its
customers# *inally& it is important to $eep in mind t!at ac!ieving superior efficiency&
)uality& and innovation are all part of ac!ieving superior customer responsiveness#
The relati!"hi# $et%ee! "trate&ie" a!' re"(rce" a!' ca#a$ilitie")
THE DURABILIT* OF COMPETITIVE ADVANTAGE)
Barrier" t i+itati!
Speed of imitation by competitors in reducing advantage
Imitation by ac)uiring similar resources
Imitation of capabilities more difficult"
Li+it" ! c+#etitr"
+rior strategic commitments
,bsorptive capacity for c!ange
I!'("tr, ',!a+i"+
T!e rapid innovation
s!ortens product life cycles#
AVOIDING FAILURE AND SUSTAINING COMPETITIVE ADVANTAGE)
*ocus on t!e building bloc$s of competitive advantage#
Institute continuous improvement and learning#
Trac$ best industrial practice and use benc!mar$ing#
-vercome inertia

You might also like