MGMT3001 Chapter Notes - Chapter 4: Competitive Advantage, Value Chain, Human Resource Management

• School: UNSW, UNSW Sydney
• Department: Management
• Course: MGMT3001
• Professor: Janiswardrop

Document Summary

Textbook reading: chapter 5 analyzing resources and capabilities. The nature of competitive advantage: ongoing innovation is a source of superior performance in business. For any company, the creation and sustainability of competitive advantage is a main consideration when it formulates its strategy. All three elements of the business system must be aligned to create a competitive advantage: first, competitive advantage can be created only if a business system creates superior value for customers. Distinctive resources and capabilities of an organisation can build the basis of a superior value proposition: business system: the resources (inputs), activities (throughputs) and product/service offerings (outputs) intended to create value for customers. Product/service offerings: to a(cid:272)hie(cid:448)e a(cid:374) att(cid:396)a(cid:272)ti(cid:448)e fit (cid:449)ith (cid:272)usto(cid:373)e(cid:396)s(cid:859) (cid:374)eeds a(cid:374) o(cid:396)ga(cid:374)isatio(cid:374) (cid:373)ust k(cid:374)o(cid:449) its ta(cid:396)get seg(cid:373)e(cid:374)t of the market. 9organisations di(cid:448)ide (cid:272)usto(cid:373)e(cid:396)s i(cid:374)to g(cid:396)oups a(cid:272)(cid:272)o(cid:396)di(cid:374)g to the diffe(cid:396)e(cid:374)(cid:272)es i(cid:374) (cid:272)usto(cid:373)e(cid:396)s(cid:859) (cid:374)eeds. The ability to charge a lower price than competitors charge for a comparable quality: product features.