CHAPTER 7 COMPETITIVE ADVANTAGE IN TECHNOLOGY INTENSIVE INDUSTRIES Frank T. Rothaermel ABSTRACT This chapter introduces the reader to the meaning of competitive advantage and posits that a firm’s strategy is defined as the managers’ theory about how to gain and sustain competitive advantage. The author demonstrates how a firm creates its competitive advantage by creating more economic value than its rivals‚ and explains that profitability depends upon value‚ price‚ and costs. The relationship among
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Referring to Millward Brown’s research‚ identify the competitive advantages of FMCG companies. Discuss if these competitive advantages are sustainable and suggest how these companies should further develop their competitive advantages in future. The case study talks about how fast moving consumer goods (FMCG) achieve competitive advantages in marketing. A company is said to have a competitive advantage if the company has greater profitability comparing to the average profitability of his rivals
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The building blocks of competitive advantage are efficiency‚ quality‚ innovation‚ and customer responsiveness. These building blocks are generic in that they provide four basic ways to lower cost and achieve differentiation. Any firm can adopt these no matter what industry it is in or what product or service it provides. Efficiency is based on the cost of inputs required to produce a given output. The more efficient a firm‚ the lower the cost of its inputs required to produce a given output. Efficiency
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is more important for developing competitive advantage? When you talk about resources‚ they are stocks of assets that are controlled by the firm‚ and these assets can be tangible or intangible. The term capabilities represent the processes by which resources are utilized that firms can use to differentiate itself from its rivals. Core competencies are combinations of resources that are linked by the capabilities that serve as a source of competitive advantage over rivals. The firm uses these
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In this report‚ I’m going to develop the competitive advantage of Brazil with Michael Porter’s theory. 1. Factor Conditions: Brazil has a great number of natural resources‚ especially at Amazon Planitia and the south of Brazil. There has fertile soil and enough facilities. In Brazil‚ labors don’t cost too much‚ it’s good for a country to prosper in its agriculture‚ industry and tertiary sector. The skills and average education level of people in Brazil is not so good but not so bad. There are many
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ORTER’S 5-FORCE ANALYSIS OF THE SPORTSWEAR APPAREL INDUSTRY | | POTENTIAL ENTRANTSMINIMUM High economies of scale required (High capital requirement). Industry dominated by huge companies likes Cheetah and Hing Yiap which both have economic advantages of durability in market. Brand identity easy to create but hard to maintain in competition with “powerhouse” brands such as Cheetah and Antioni. Greatest access to suppliers of raw materials and efficient distribution channels High switching
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Comparative advantage In economics‚ comparative advantage refers to the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another. Even if one country is more efficient in the production of all goods (absolute advantage in all goods) than the other‚ both countries will still gain by trading with each other‚ as long as they have different relative efficiencies.[1][2][3] For example‚ if‚ using machinery‚ a worker in one country can produce both
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Competitive Advantage in Technology-intensive industries The principal link between technology and competitive advantage is innovation: this is responsible for new industries coning into being and for some firms dominate their industries. The innovation process: while invention is the creation of new products or processes through the development of new knowledge or a combination of existing ones‚ innovation refers to the commercialization of a single or of many inventions. Not all inventions
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Wal-Mart competitive advantage 6. To what extent is WM’s competitive advantage sustainable? * At the time discount stores were located within large towns‚ WM’s strategy was to put good-sized stores into little one-horse towns that everyone else was ignoring. * WM alternative was to build their own distribution centers so that they could buy in volume at attractive prices and store the merchandise. * WM earn the trust of their customers every day by providing a broad assortment of
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Competitive Advantage and Pro Sports William Brown MGT/488 STRATEGIC BUSINESS MANAGEMENT AND PLANNING February 5‚ 2010 Dr. Bob Amason Competitive Advantage and Pro Sports Are they Valuable? Yes‚ Pete Carol has been valuable to the brand in the past. He is a brand in himself. This year the Trojans have suffered without him‚ his philosophy‚ and his charm. One may highlight that he fled to avoid the NCAA -scandal so perhaps the team is better but a prominent coach adds sparkle to the
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