Sustaining Competitive Advantage Essay

1202 Words Jan 23rd, 2013 5 Pages
Sustaining Competitive Advantage
Charles Stove
MGT/498
September 6, 2012
Jeanne Beyer

Sustaining Competitive Advantage
Strategic planning is essential for the growth and future of firms and business organization. The business future is measured according to the present and past achievements and disappointment of the firm. The future will have to entail the challenges presented by environmental changes, fundamental competencies and specific strengths that a firm must use to pursue effectiveness in the competing markets both domestic and international. Strategic perspectives are needed because of fast changing technology, new products, innovative ideas, pursue of global markets, and political changes. In order for businesses to grow
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To help bring upfront the business position competitively in the industry to help formulate strategy an environment survey is performed. Supplier related factors, government policies, industry and competition, and demand related factors are all included in the environmental survey. In assessing the opportunities and threats, Michael Porter states in his thesis about the five forces that develop competition which is the bargaining power of customers, barriers of new entry , rivalry among competitors and suppliers, and the threats of alternative or substitutes (Wheelen, 2010). A company that brings in new technological advances and broadens their distribution area tends to grow faster and have a decisive edge over other companies. In analyzing strength and weaknesses the company must be honest and open about its capabilities to compete and scrutinize its capabilities to outperform the businesses competition will help define a solid business strategy. A competitive advantage establishes superiority for businesses against its competitors and also helps in developing worthwhile strategies. The key to take a company to its objectives is the competitive advantage used with strategy. Businesses must become learning oriented and knowledgeable of transferring, acquiring, and creating knowledge and also modifying that same knowledge according to insights, examination and experimentations that involves people throughout the organization and not just the people

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