Strategic Advantage

Sources of Strategic Advantage:

• 1Describing Strategy, Intended v Emergent Strategy
• 2. Micro Economics - MES, Econ of Scale, Price elasticity, Opportunity Costs
• 3. Macro Economics - Business Cycles, GDP, World Bank, OECD, Tiger Economies then Bubble - Thailand - Burgers and Exchange rates
• 3b. Macro-environment PEST
• 4. Industry Analysis - Porter's Five Forces Porter's Value Chain, Strategy Cycle STP
• 5. Competitive Position - Porter's Generic Strategy Strategic Group Competitive Advantage Strategic Assets
• 6. Strategic Capability (Firm Level) - SWOT Analysis matching with the macro environment Resource Based View, The Core Competency of the Organization (Prahalad and Hamel Core Competence in Practice Entrepreneurs and Intrapreneurs, Sequential Entry Strategies
• 7. Parenting Advantage Parenting Style Portfolio Management Resource Allocation and Control Boston Box Corporate Restructuring, Turnaround Strategies M&A Balanced Scorecard GE Attractiveness Sharpbender
• 8. International and Global Advantages Porter's Diamond of National Advantage, The Value chain and international strategy Ghoshal MNEs

Country-Specific Advantage Porter's Double Diamond Flagship Firm Managing MNE's Diversification Triads

• 9. Strategy and New Economy Network Externalities Modular v Architectural Innovation Tipping Point Co-Evolution

Thinking about Strategic Advantage

• Remember to contrast and compare the different approach give opinions and recommendations. For instance you cannot use Core Competence if your businesses are all different - at least not in tangible way. And what complementary approaches were used
• How do the forms of CA enable the firm to carry out its strategy? - that is - How does it allow them to create value - Through Competence, Low Cost - Mergers, International expansion
• What are the risks of adopting a particular corporate strategy - over extension, change in technology or environment?
• Do not forget to use the appendices to the Case Study
• Branding and Brand Portfolio can be used to create a CA

Ways to Analyze Strategic Advantage

• Look at the Macro Environment using PEST
• Analyze the Industry using Porter
• Determine the Competitive Position using Generic Strategy

(Determine its capability to use the chosen by looking at FSA's Core Competence, Parenting Advantage, Portfolio Management

• If we are looking at Multi-business co look at CSA, Diamonds, Ghoshal, MNE's, turnaround strategies, Entrepreneurs, Diversification, Stick to the Knitting
• If you are investigating new economies mention Network Externalities, Tipping Point Winner takes all
• Use example of other firms to make the point. Canon/Xerox, Honda, etc