COMPETITIVE ADVANTAGE

Strategic Management
Functional-level strategies
Aimed at improving the effectiveness of a company’s operations and its
ability to attain superior:
• efficiency.
• quality.
• innovation.
• customer responsiveness.

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Factors leading to superior efficiency
Economies of scale

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Factors leading to superior efficiency
Learning effects

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Factors leading to superior efficiency
Experience

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Factors leading to superior efficiency
Flexible production systems and mass customization

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Factors leading to superior efficiency
Marketing

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Factors leading to superior quality
Attaining superior product reliability by TQM (lower costs, high
productivity, better quality, higher market share leading to high price
point, high profitability)

Implementing reliability improvement methodologies (quality

improvement using Six Sigma)

Differentiation (attributes—product, service, associated personnel)

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Factors leading to superior innovation
Extensive research and development [Pfizer]

Testing [MS phones]

Cross-functional integration

Speed [General Motors]

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Achieving superior customer
responsiveness
Customer-centric approach

Effective leadership

Understanding and satisfying customer needs

Customization

Response
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Reference
Book
Chapter 4 of ‘Strategic Management: An Integrated Approach’ by Hill, Schilling & Jones, 12 th Edition,
Cengage

Weblinks
https://timesofindia.indiatimes.com/gadgets-news/amazon-shuts-down-another-business-in-india-read-company-statement/articleshow/9584
7345.cms

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