Sustainable competitive advantage

Question 1

Operational efficiency

Question 1

Porter 2.0

Answer 1

strategy is about being different and performing activities different from rivals

Question 2

Porter 2.0- things for success

Answer 2

1. Unique value proposition
2. Different tailored value chain
3. Clear trade offs
4. Activities which fit together
5. Strategy with continuity & leadership

Question 3

Value proposition

Answer 3

• decide which customer you’re selling too and which ones you’re not
• which customers needs are you meeting and decide how to satisfy them?
• what is the relative price after considering above factors?

Question 4

Sustaining competitive advantage: 3 line defences

Answer 4

1. Tailored value chain
2. Trade off choices
3. Fit in system of choices

Question 5

Trade off choices

Answer 5

• make a choice to commit to one customer base

Question 6

Porter suggest trade offs are made by…

Answer 6

1. value propositions
2. choices align to activities to deliver proposition

Question 7

Fit: whole fitted system of activities

Answer 7

1st - order fit - simple consistency
2nd - order fit - Reinforcing fit (synergy)
3rd - order fit - optimisation effort - adjusting activities for fit