ACCTG 1 Lecture Notes - Lecture 8: Competitive Advantage, Flowchart, Cost Leadership
Document Summary
This flowchart is the basic process of strategic analysis, basic toolbox to do a job. In the real world it"s a lot more complicated. Generic competitive strategies: competitive advantage is about how a company, business unit or organisation creates value for its users, both greater than the costs of supplying them and superior to that of rivals. Sustainable competitive advantage is a better way of saying it as makes it long time: competitive strategy is concerned with how a company, business unit or organisation achieves competitive advantage in its domain of activity. This is mainly how is creates sustainable competitive advantage. Some organisations can compete on the basis of costs, difficult for the public to get at the information to compare the underlying costs. If shops have lower prices than sometimes their costs will be lower because they can offer a low price. Ways to keep costs down: scale/size, economies of scale, experience, product/process design, lower input costs.
