UNIT 8 - Sustainable competitive advantage

Question 1

competitive advantage occurs when

Answer 1

bs creates value for customers

that’s both

greater than cost of supplying benefits it offers

and is

superior to that of other bs

Question 2

give example of comp adv both low cost strat and differentiaition

Answer 2

low cost - similar benefits at lower price

diff - higher benefits at a similar price

Question 3

however if bs has advantage over others

Answer 3

rivals want to copy it removing comp adv

Question 4

as rivals cna just copy adv of bs and therfore take away advantage bs will

Answer 4

want to develop sustainable competitive advantage it can protect OT

Question 5

State ways bs might protect tis competitive advantage

Answer 5

Legal Proctection

Control over Resources

A particular culture

Question 6

explain sustainable copetitive advantage thorugh legla protection

Answer 6

pateents giving legal protection to new inventions for a number of year

laws by gov to protect bs or industry from foreign competition e.g trade barriers - improt tariffs

Question 7

explain sustainable copetitive advantage thorugh Control over resources

Answer 7

e.g owning diff stages of supply chain

if bs controls some of these resources or stages it can prevent others accessing them

Question 8

give rela life example of control over resources

Answer 8

de beers controls sig proportion of supply of diamonds in world - legal restrictions

Question 9

PARTICULAR CULTURE - what does culture mean

Answer 9

values and attitudes of its employees - way the y think and how they behave

Question 10

PARTICULAR CULTURE - WHY IS CULTURE DIFFICULT TO COPY

Answer 10

relies on what people actually beleive

influenced by factors like history of bs and xp of members

Question 11

PARTICULAR CULTURE - unlike a equiment cant be .. it has to

Answer 11

bought and installed

grow ot and people incorporated into way people think and operate