【正文】 e petitive advantage? 113 Strategy and the Quest for Competitive Advantage ? The heart and soul of any strategy are actions a pany makes to ?Improve its financial performance, ?Strengthen its petitive position, and ?Gain a petitive advantage over rivals ? A creative, distinctive strategy that sets a pany apart from rivals and yields a petitive advantage is a pany’s most reliable ticket to above average profitability ?Operating with a petitive advantage is more profitable than operating without one ?Operating with a petitive disadvantage nearly always results in belowaverage profitability 114 A Powerful Strategy Leads to Sustainable Competitive Advantage ? A pany achieves sustainable petitive advantage when ? An attractive number of buyers prefer its products/services over those of rivals and ? The basis for this preference is durable ? Its nice when a strategy produces ? A temporary petitive edge but ? A sustainable edge over rivals greatly enhances a pany’s prospects for aboveaverage profitability What separates a powerful strategy from an ordinary strategy is management’s ability to fe a series of moves, both in the marketplace and internally, that produces sustainable petitive advantage! 115 Strategic Approaches to Building Sustainable Competitive Advantage ? Be the industry’s lowcost provider ? Achieve a costbased petitive advantage ? Incorporate differentiating features ? Superior product/service keyed to higher quality, better performance, wider selection, valueadded services, or some other attribute ? Focus on a narrow market niche ? Win a petitive edge by doing a better job than rivals of serving the needs and preferences of buyers in the niche ? Develop expertise and resource strengths not easily imitated or matched by rivals ? Achieve a capabilitiesbased petitive advantage 116 Competitive Advantage Examples ? Strive to be industry’s lowcost provider ?WalMart ?Southwest Airlines ? Outpete rivals on a key differentiating feature ?Johnson Johnson – Reliability in baby products ?HarleyDavidson – Kingoftheroad styling ?Rolex – Topoftheline prestige ?BMW– Engineering design and performance ? – Wide selection and convenience 117 Competitive Advantage Examples (con’t) ? Focus on a narrow market niche ?eBay – Online auctions ?Best Buy – Home electronics ?McAfee – Virus protection ?Starbucks – Premium coffees and coffee drinks ?The Weather Channel – Info about the weather ? Develop expertise, resource strengths, and capabilities not easily imitated by rivals ?Walt Disney – Theme park management and family entertainment ?Dell Computer – Buildtoorder manufacturing capabilities ?RitzCarlton – Personalized customer service Figure : Identifying a Company’s Strategy 118 119 Test Your Knowledge A pany’s strategy and its quest for petitive advantage are tightly related because A. a pany’s strategy determines whether it will have lower or higher costs than rivals and thus be at a petitive advantage or disadvantage. B. petitive advantage is essential to having a profitable business model. C. choosing a petitive advantage to pursue also helps a pany choose which business model is most appropriate. D. petitive advantage enables a pany to achieve its strategic objectives. E. a strategy that leads to sustainable petitive advantage is a pany’s most reliable means of achieving aboveaverage profitability and financial performance. 120 Why Do Strategi