Corporate Strategy Game - Unveiling the Veil of Competitive Advantage

Author: Bruce Greenwald (USA), Judd Kahn (USA)
Publisher:
Publish Date: 2007-01-01
Features: Competitive strategy is often made overly complex. In fact, if you truly understand the competitive structure of your industry, the correct strategy usually develops around the answer to one question: What barriers to market entry allow us to do things that other companies cannot? If the answer is "none," then the problem lies not in strategy. Because the company lacks competitive advantages, it can only face two choices: either actively pursue high operational efficiency or choose to exit the current market and enter different fields where you can create and fully leverage competitive advantages. If the answer is "yes," then strategy becomes crucial. The company's profitability depends on whether you can effectively deter potential competitors from entering the market and effectively manage competition among peers, allowing you to fully leverage your competitive advantages. Competitive strategy is often made overly complex. In fact, if you truly understand the competitive structure of your industry, the correct strategy usually develops around the answer to one question: What barriers to market entry allow us to do things that other companies cannot? If the answer is "none," then the problem lies not in strategy. Because the company lacks competitive advantages, it can only face two choices: either actively pursue high operational efficiency or choose to exit the current market and enter different fields where you can create and fully leverage competitive advantages. If the answer is "yes," then strategy becomes crucial. The company's profitability depends on whether you can effectively deter potential competitors from entering the market and effectively manage competition among peers, allowing you to fully leverage your competitive advantages.