CCR 9- Competitive Advantage
What does it involve?
It involves having or doing something that your rivals do not have in the way that you have it, or doing something in a way that your rivals cannot match
What is the third factor on Porter's sustainable competitive advantage?
Clear trade-offs and choices vis-à-vis competitors. Are they consciously acting different from their competitors by actively doing X and not doing Y? (e.g. petGRO purposely not making hamster food)
What is the fourth factor on Porter's sustainable competitive advantage?
Competitive advantage arises from fit across activities. Do all their company activities work together in a seamless fashion to create value? Are their activities synchronised and seamless or is there lots of chewing gum and duct tape holding their business processes together?
Is sustainable competitive advantage easy to obtain?
No, competitive advantage is fleeting. Thus sustainable competitive advantage is a difficult thing to achieve.
What is the sixth factor on Porter's sustainable competitive advantage?
Operational effectiveness is a given Are they wasteful? Waste is not a competitive advantage.
What is the fifth factor on Porter's sustainable competitive advantage?
Sustainability is derived from the activity system, not the parts. Are they different because they do different things or do the same things in a different way than their competition? Can their competitors easily mimic the petGRO process?
What is a sustainable competitive advantage?
A sustainable competitive advantage occurs when an organisation uses organisation-specific resources to accomplish something its rivals cannot
What is the second factor on Porter's sustainable competitive advantage?
Activities tailored to strategy. Do all their functional areas have the same goals - low price or high quality, for example? Does the company have a consistent strategy?
What is the first factor on Porter's sustainable competitive advantage?
Unique competitive position. Are they different enough from other companies in the industry that customers would actively choose their products over others? Would they substitute another product instead?
