SGMT 3000 Lecture Notes - Lecture 4: Information System, Materials Management, Customer Service
9 May 2016
School
Department
Course
Professor
Document Summary
Exists when a company"s profitability is greater than the average profitability of all companies in its industry. Sustained competitive advantage - exists when a company maintains its competitive advantage over a number of years: primary objective of strategy. Firm-specific strengths that allow a company to differentiate its products and/or achieve lower costs than its rivals: arise from resources and capabilities. Tangible resources: physical entities i. e land, buildings, and inventory, and money: intangible resources: nonphysical entities created by managers and other employees. Requirements: firm-specific and valuable resource, and the capabilities to take advantage of that resource, or, firm-specific capability to manage resources. Distinctive competency is strongest when a company possesses both. Two arguments: possess certain resources/capability, they are most likely to achieve distinctive competency, those resources and capabilities must have least 3 characteristics (valuable, rare, inimitable) If a firm is in possession of certain resources/capabilities, they are most likely to develop distinctive competency.
