Competitive Advantage

A cost leader must achieve parity or proximity

• Broad Cost of leadership Strategy

• Broad Differentiation Strategy

• Focus Strategy

• Broad Expense Leadership Strategy

Not sustainable position though it may gain market share in the short term

• High benefits, high cost, high price

• low benefits, high cost, high price

• High benefits, high cost, low price

• low benefits, low cost, low price

The ideal position for a firm is to be the only ________in a specific segment or market.

Occurs when the competitor offers a sub-set of services used by a broad range of segments

• Variety Based positioning

• Need Based positioning

• Access Based Positioning

This position is unlikely to gain any market share and is extremely unsustainable.

• high benefit, low cost, high price

• low benefit, high cost, high price

• low benefit, high cost, low price

• low benefit, low cost, high price

This position is unlikely to be internally sustainable or gain sustainable market share

• low benefit, high cost, low price

• low benefit, high cost, high price

• high benefit, high cost, high price

• high benefit, high cost, low price

An analysis of competitive advantage requires understanding both a firm's market position and

• strength

• opportunities

• resources

• costs

The practical value of a resource-based perspective is that it enables managers to understand, preserve, or

• minimize competitive advantage

• extend competitive advantage

• minimize competitive disadvantage

• extend competitive disadvantage

This occurs when existing stocks of a firm's assets are slowly eroded or worn

• Causal ambiguity

• Erosion of assets

• Asset mass efficiencies

• minimalization of asset

This involves focusing on all the needs of a particular segment that are accessible in a different way

• Needs Based pisitioning

• Access Based positioning

• Variety Based positioning