BSM 600 Chapter Notes - Chapter 4: Outsourcing, Capacity Utilization, Cost Leadership
17 May 2016
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Document Summary
Chapter four the nature and sources of competitive advantage. Two primary building blocks of ca: chapter 2 external sources, chapter 3 internal sources. Ext and int changes can create short-term opportunities for creating an advantage. External change must have differential effects on companies because of their different r&c or strategic position. Extent of change depends on magnitude of it and extent of firms" strategic differences. Examples: changing customer demand, changing prices, tech change. Ext change creates opportunities for profit and/or new business initiatives: entrepreneurship . Two key capabilities: ability to anticipate change in external environment, speed. Short cycle times that allow info on emerging market developments to be acted upon speedily. New industries some firms launch products creating whole new market. Blue ocean strategy creating new markets, uncontested market space. Imitation most direct form of competition: thus need barriers to imitation. Process of comp imitation 4 conditions must be met: identification must know the rival possesses a ca.
