BU481 Lecture Notes - Lecture 11: Competitive Advantage, Path Dependence, Social Complexity
Document Summary
Competitive advantage whatever its source can be ultimately can be attributed to the ownership a valuable resource that enables the company to perform activities better or more cheaply than competitors. Doing things internally that can help the organization. Superior competitive performance will therefore be based on developing a competitively distinct set of resources and deploying them in well-conceived strategy. Companies with competitively valuable resource strengths and competencies often deploy these capabilities: boost the competitive power of their overall strategy, bolster their position in the marketplace. Resource based strategies: attempt to exploit company resources to offer value. A resource that is valuable in a particular industry or at a particular time might fail to have the same value in a different industry or chronological context. Internal perspective of firm: industry analysis only tells us so much. Suggests how to put idea of core competencies into practices. Way of explaining why some competitors are more profitable than others.
