Strategy analysis - Competitive strategy analysis

4 important questions on Strategy analysis - Competitive strategy analysis

Cost leadership enables firms to

Supply the same products or service offered by its competitors at a lower cost

Describe characteristics of cost leadership

Supply the same produt at lower cost
economies of scale
efficient production
simpler product designs
lower input costs
tight cost control systems

Descibe the characteristics of differentation

Supply a unique product or service at a cost lower than the price premium customers are willing to pay
superiour product quality
superiour product variety
more flexible delivery
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What makes a competitive strategy unique and thus succesful in achieving a sustainable competitve advantage?

Unique core competences
system of activities
positioning

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