What does it do differently than its typical competitors?
The whole SAP #5 is below but this is a group project and I am only required for the specific section titled above.
SAP 5: Analyze the Firm’s Competitive Advantage
The primary objective of this section is to identify the chosen firm’s competitive advantage (or lack thereof).
By now you have already identified the unique resources and/ or capabilities this firm possesses (SAP 4). You have also appraised the firm’s resources and capabilities to identify their ability to generate a competitive advantage for the firm (SAP 4).
Your analysis in this section will establish the relationship between the firm’s strategy (SAP 1) and its competitive advantage (or lack thereof). If you think that the chosen firm does possess a competitive advantage you will analyze the basis of the advantage to understand the sustainability of such a competitive advantage. However, if you think that the firm does not possess any competitive advantage you will analyze the gap as to why the firm’s strategy does not confer it with a competitive advantage.
Required Content for Grading
What are the sources of firm’s superior or inferior performance?
Explain the chosen firm’s competitive advantage in industry Y. In other words, why does your chosen firm perform better than its rivals in industry Y? If the chosen firm is a multi-business firm then explain the same in the context of one of its businesses.
What does it do differently than its typical competitors?
Compare the chosen firm’s unique activities along with the resources and capabilities deployed to perform those activities to its nearest rivals.
Where does firm X have a competitive advantage (if anywhere)?
Hint: External – Strategic position; Internal – resources, capabilities, core competencies and value chain.
What does your analysis imply for firm’s potential to establish cost and differentiation advantage over its rival?
Differentiation or cost focus can often be determined from a close examination of the annual report.
Differentiation: All firms will talk about costs, but a differentiated firm will also highlight how it views its products (service) to be different from the competition. You can review the Value Drivers section of the text for some thoughts on the basis of the differentiation.
Cost-leadership: Financial analysis of the focal firm and key competitors is the clearest way to determine if the firm has cost leadership. Do not be tempted to take the easier-to-find price differential as a signal on costs. This can be misleading, particularly over a short time frame (such as one year). Focus on costs found in the financial section of the annual report of many industry websites. You can review the Cost Drivers section of the text for some thoughts on the basis of cost leadership.
If firm X has a competitive advantage then how sustainable is it?
ow difficult would it be for a competitor to mimic the firm’s strategic position or the underlying business model(s)?
