33:620:301 Study Guide - Midterm Guide: Organizational Architecture, Socalled, Intellectual Capital
16 Feb 2017
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Strategy: a company"s action plan for outperforming its competitors and achieving superior profitability. All about how to: attract and please customers/compete/position the co. in the marketplace/respond to changing economic and market conditions/capitalize on attractive opportunities/achieve performance targets. Strategy is about doing what competitors don"t or can"t do, focuses on getting good results in the long run, and tells a company not only what it should do, but what it shouldn"t do. Competitive advantage: when a company has an edge in attracting buyers/coping with competitive forces. Gotten by giving buyers perceived superior value or same value at a lower cost to the firm. A competitive advantage hinges just as much on building expertise as a distinctive product; a product can be copied, but expertise is much harder to. A comp. adv. is sustainable if it persists despite the efforts of competitors to overcome it. 4 commonly used strategies to gain a competitive advantage: low-cost provider, differentiating features (higher quality, best-cost provider.
