WK 1
A set of related actions that your organization takes to achieve a goal(s)
Strategy
Elements and conditions in your company’s external environment that could endanger your company’s integrity profitability
Threats
A company has THIS over its rivals when its profitability is greater than the average profitability of all companies in its industry
Competitive Advantage
The firm’s ability to achieve new forms of competitive advantage in rapidly changing environments
Dynamic Capabilities
It is to analyze the competitive environment of your industry
Porter’s 5 forces model
A plan of a company's promotional efforts across a wide range of platforms and channels to deliver your products or services in ways that will satisfy your customers
Marketing strategy
If buyers believe they can always find an equivalent product, they play one vendor against another and they face low switching costs in changing vendors
Bargaining power of buyers/customers
A company has THIS when it’s able to maintain above-average profitability over a number of years
Sustained Competitive Advantage (SCA)
A firm’s competitive advantage is eroded depends on THIS and imitatability of organizational processes and positions
Replicability
It is an attractive price-performance trade-off to the existing product and lowers the buyer’s cost of switching to the product
Substitute
Management tools/techniques to eliminate inefficiencies (e.g. TQM) by performing similar activities better than rivals perform them
Operational Effectiveness (OE)
You face huge switching costs in changing what organizations provide and these organizations offer unique products, not generic ones
Bargaining power of suppliers
Stocks of available facotors that are owned or controlled by a firm
Resources
A firm’s evolutionary paths, colloquially called "history matters", leading to the heterogeneity of firms’ capacities to reply resources and using organizational processes in changing environments
Path dependencies
This theory explains the internal sources of a firm’s sustained competitive advantage
RBV (Resource-Based View)
Choosing activities (needs-based, variety-based and access-based) that are different from rivals
Strategic Positioning
Major sources to increase THESE are economies of scale and high capital requirements
Barriers to entry
Most your rivals have similar resources to yours, thus you do not have THESE
Rare resources
Once a firm's evolutionary path is “this”, resulting in high switching costs and constraining its future behavior
Locked-in (lock-in)
It is to gauge the quality of your firm’s resources
VRIO or VRIN+O framework
The conception of how strategies should work together as a whole to enable the company to achieve competitive advantage
Business Model
They can affect the entry barriers and the threat of substitutes and are often mistaken as a force
Complementary products and services
When your firm has THESE, competing firms face a cost disadvantage when they try to substitute or benchmark THESE
Inimitable Resources
Competing firms end up with similar capabilities as there are multiple paths to the same abilities to achieve competitive advantage in rapidly changing environments
Equifinality
It is the excess amount or the earned income one receives above the actual price
Economic Rent