ADMS 4900 Lecture Notes - Lecture 5: Cost Leadership, Experience Curve Effects, Customer Service

• School: York University
• Department: Administrative Studies
• Course: ADMS 4900
• Professor: John Spano

Document Summary

Chapter 5: business-level strategy: creating and sustaining competitive advantages: business-level strategy is about the particular ways a firm competes in its chosen business. Both perspectives provide invaluable insights for managers and reveal different, largely complementary, facets of business strategy. Types of competitive advantage and sustainability: michael porter identified three generic strategies that a firm can use to align best with the five forces and achieve competitive advantage. Each of porter"s generic strategies has the potential to allow a firm to outperform its rivals within the industry: the first, cost leadership is based on creating a low-cost position relative to a firm"s peers. A firm emphasizing a focus strategy must still attain advantages either through differentiation or through cost leadership; however, these advantages are targeted at a narrow market focus as opposed to industry wide. Overall cost leadership: the first generic strategy is overall cost leadership.