September 8, 2020   |   by admin

Creating Competitive Advantage P. Ghemawat & J. Rivkin Cont’d. How does a firm identify opportunities to create competitive advantage Dumb (or smart) luck. Strategists Pankaj Ghemawat and Jan Rivkin appear in the HBR February edition. In it, they examine why large differences in economic performance exist, . Creating Competitive Advantage P. Ghemawat J. W. Rivkin December 22nd, Submitted By: Group A5 – Section A Ajay Bansal Alpesh Chaddha Aman.

Author: Shak Akinorg
Country: Peru
Language: English (Spanish)
Genre: Health and Food
Published (Last): 5 July 2007
Pages: 365
PDF File Size: 12.33 Mb
ePub File Size: 17.87 Mb
ISBN: 608-5-37446-274-9
Downloads: 33100
Price: Free* [*Free Regsitration Required]
Uploader: Digor

Southwest Airlines has configured itself to focus on budget customers particularly well. The ability to generate and capture profits in an industry derives from added value.

Creating Competitive Advantage_百度文库

Business and Environment Competiitive History Entrepreneurship. If the group of competing products plays a small role in satisfying a need relative to other products outside the group, the need can often be removed from the list. The Whole Versus the Parts The analysis we have described focuses on decomposing the firm into parts—discrete activities.

This type of disparity, in which different customers rank products differently, is known as horizontal differentiation. Just as willingness to pay captures the most that buyers will pay for a product, opportunity cost is the least that suppliers will accept for the resources used to make a product. The essence of creating advantage is finding an integrated set of choices that distinguishes a firm from its rivals.


In the retail brokerage business, for instance, both Merrill Lynch and Edward Comletitive succeed, but they do so in very different ways.

Creating Competitive Advantage Figure 8: The management team has the machinery in place to understand how changes in activities will affect competitive advantage.

In this approach, enabled by information and production technologies, companies begin to tailor their products to individual customers. Explore Options and Make Choices Some decisions affect both the opportunity cost and the willingness to pay e. In the remainder of this note, we focus on the analysis of actual costs.

Creating Competitive Advantage P. Ghemawat & J. Rivkin

In actuality, many of the greatest advantages come not from analysis, but from entrepreneurial insight and trial-and-error. It also strives to generate more economic profits than the typical firm in its industry. In the snack cake example, the Collins managers felt that Betsy Baking would readily launch a rikin war against any competitor that tried to match its low-cost, low-price strategy.

Also problematic is a tendency to compare costs as a percentage of sales rather than in absolute dollar terms. Activity Analysis Step 1: Create a free website or blog at WordPress. Posted by Patrick Bertschy on October 3, Download ppt “Creating Competitive Advantage P.


A firm can use its analysis of activities to generate and assess options for creating competitive advantage. Each point in this space represents a different set of choices, a different configuration of activities.

This entry was posted on October 3, at But even in industries that are not pure commodities, differences in cost often wield a large influence on differences in profitability.

Notify me of new rivvkin via email. A typical procedure is as follows. Because Betsy Baking used inexpensive raw material, purchased in bulk, and tapped national scale economies, its operations costs totaled 21? Signals conveyed through advertising, packaging, branding efforts, etc. When considering changes in activities, it is crucial to consider competitor reactions. Cite View Details Purchase. Fill in your details below or click an icon to log in: It emphasizes two themes: A firm that attains a wider wedge is said to have a competitive advantage.