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23 Cards in this Set
- Front
- Back
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What are the four building blocks of competitive advantage? (Functional level strategies)
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efficiency, customer responsiveness, reliable (quality), innovation
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has this over its rivals when its profitability is greater than the average profitability of all companies in its industry
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competitive advantage
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has this when able to maintain above-average profitability over a number of years
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sustained competitive advantage
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firm-specific strengths that allow a company to differentiate its products from those offered by rivals and/or achieve substantially lower costs than its rivals
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Distinctive competencies
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what two complementary sources does distinctive competencies arise from?
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Resources and Capabilities
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assets of a company
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resources
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physical entities (land, building, plant, equipment, inventory, and money)
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Tangible Resources
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Nonphysical entities created by managers,employees such as brand names, reputation, knowledge gained through experience, copyrights
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Intangilbe Resources
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enable company to create strong demand for its products, and/or to lower its costs
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Valuable (resources are valuable when they meet this)
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competitors do not posses them, and difficult for rivals to inmitate (that is barriers to imitation)
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rare (valuable resources are more likely to lead a sustainable competitive advantage if they are rare)
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company's skills at coordinating its resources and putting them to productive use
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Capabilities (product of org structure)
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something that customers get from a product
-the happiness or satisfaction gained from consuming or owning the product |
Utility
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company is a chain of activities for transforming inputs into outputs that customers value
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Value Chain
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What are the primary activities in the Value chain?
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R&D
Production Marketing and Sales Customer Service |
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What are the supporting activities in the value chain?
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Materials Management (logistics)
Human Resources Information Systems Company Infrastructure |
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design, creation, and delivery of the product, its marketing and its support and after-sales service
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Primary Activities
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Value chain provide inputs that allow the primary activities to take place
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Support Activites
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4 Distinctive Competency (resource-based view RBV)
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Valuable
Rare Imitation NS |
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output produced per employee
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Employee productivity
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increasing product reliability
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total quality management TQM
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products new to world or have superior attributes to existing products
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Product Innovation
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Development of new process for producing products and delivering them to customers
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Process Innovation
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time it takes for a good to be delivered or a service to be performed
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customer repsonse time
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