BSM 600 Chapter Notes - Chapter 4: Blue Ocean Strategy, Resource-Based View, Competitive Advantage

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 600
• Professor: Tim Pervin

Document Summary

Foundations of strategy: chapter 4 - the nature and sources of competitive. Glossary: competitive advantage, entrepreneurship, time-based competition, strategic innovation, isolating mechanisms, causal ambiguity, uncertain imitability, cost advantage, differentiation advantage, cost drivers, differentiation advantage, superior value advantage, Primary goal of a strategy is to establish a position of competitive advantage for the firm. We will look more deeply at competitive advantage. By understanding characteristics of competition in a market, we can identify opportunities for, and the challenges to, competitive advantage. Competitive advantage: when 2 or more firms compete within same market, one firm possesses a competitive advantage over its rivals when it earns (or has the potential to earn) a persistently higher rate of profit. Competitive advantage is not necessarily having higher profitability. Long run: competition eliminates differences in profitability between competing firms, but external and internal changes can create short-term opportunities for creating an advantage.