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Evaluation of Case Readings:
Use the framework on five distinct generic competitive strategy approaches to
determine the core competitive strategy applied by the subject company.
Key Pointers
Winning strategies are grounded in sustainable competitive advantage
A company has core competitive advantage whenever it has
- an edge over rivals in attracting customers and
- defending against competitive forces
Competitive Strategy - consists of the business approaches and initiatives it undertakes
- to attract customers and fulfill their expectations,
- to withstand competitive pressures,and
- to strengthen its marke position
Competitive Strategy has a narrower scope than Business Strategy.
- Competitive Strategy deals exclusively with management's action plan for competing successfully and providing superior value to customers.
- Business strategy concerns not only how to compete but also how management intends to address all other strategic issues confronting the business.
The Basis of Competitive Advantage
The biggest and the most important difference among competitive strategies boil down to
- whether the company's target market is broad or narrow.
- whether it is pursuing a competitive advantage linked to low cost or product differentiation.
