STRATEGIC
MANAGEMENT
YangYang
Esam
01 What is competitive
advantage?
02 What are the global challenges for
a MNC?
03 What is a competitive profile
matrix(CPM)?
What is competitive advantage?
Term in the strategy literature=VALUE
CREATION
’Super-normal’
Heart of a firm’s performance in competitive
market
What is competitive advantage?
• A competitive advantage is an advantage
gained over competitors by offering customers
greater value, either through lower prices or by
providing additional benefits and services that
justify similar, or possibly higher, prices.
• Increase profit and venture is sustainable and
successful over the long term period.
Low cost, differentiation advantage, successful focus strategy
Grows fundamentally out of value a firm is able to create for
its buyers that exceeds the firm’s cost of creating it.
”Sustained above normal return”:peteraf(1993)
A firm experiences competitive advantages when its action in
an industry or market create economic value and when few
competing firms are engaging in similar actions.
Sustainable competitive advantage is based
on:
Assets and skill
Processes and systems
People and culture
Manufacturing and service capability
R&D capability
Sustainable competitive advantage is based
on:
SHOULD BE:
Leveraged: into viable business attributes that
will influence customers
Substantial: enough to make a different
Sustainable: in the face of inevitable changes,
competitive actions
Sustainable competitive advantage is based
on:
Based a combination of strategic thrusts:
Differentiation
Low cost
Focus
What are the global challenges for a MNC?
M=MULTI
N=NATIONAL
C=CORPORATION
•
Global challenges for a MNC include :
Internal and external environment
Company’s capability
Cost
Client needs
Technology
Market
Talent
What are the global challenges for a MNC?
Planning is not...