Competitive Strategy
Competitive strategy is the search for a competitive position within an industry, realizing a profitable and sustainable position based on strengths that determine industry competition. A company has a competitive advantage if it has something that competitors do not, does something better than other companies, or is able to do something that other companies cannot.
Industrial Organization Model
1. Study the external environment.
2. Choose an attractive industry.
3. Formulate a strategy.
4. Develop and acquire necessary assets.
5. Implement the strategy.
6. Use the company's strengths to implement the strategy.
7. Strive to achieve above-average industry performance.
Resource-Based View (RBV)
1. Identify the company's resources.
2. Determine the company's capabilities.
3. Determine how the company's resources and capabilities can create a competitive advantage.
4. Locate an industry with exploitable opportunities.
5. Choose the best strategy to exploit resources and capabilities in the industry environment.
6. Implement the chosen strategy to outperform competitors and achieve above-average industry earnings.
Dynamic Capability
The ability to shape, reconfigure, and renew a company's capabilities to respond well to environmental changes. This process involves four stages:
1. Identifying and assessing environmental changes.
2. Assessing the fit between the company's resources and capabilities with the KSF.
3. Adjusting or renewing resources and capabilities.
4. Utilizing renewed resources and capabilities to formulate and implement a new strategy.
Product Differentiation
1. Differentiating the core and expected product.
2. Augmenting the product to add value.
3. Quality.
4. Packaging.
5. Branding.
6. Service.
7. Deciding on the bases for product differentiation.
