Developing Strategies for Competitive Advantage

2011 ◽  
pp. 58-79
Author(s):  
Tamio Shimizu
Keyword(s):  
Competitive Advantage ◽  
Competitive Strategy ◽  
Emerging Technologies ◽  
The Other ◽  
Competitive Environment ◽  
Strategic Groups ◽  
Industry Analysis ◽  
Competitive Strategies ◽  
The Real ◽  
Developing Strategies

As in any game, the success of competitive strategies depends on knowing the rules as well as the other players. Nevertheless, in the real competitive environment, the rules are not always clear and can change very quickly, demanding quick responses and making it increasingly difficult to map the moves of the main players. Strong monitoring channels must be maintained to follow changes in the competitive environment and to discern new trends. Changes in the environment can result from emerging technologies or changes in society’s behavior, and thus in clients´ demands. They can also be the result of competitors´ moves in the market. Thus developing a good competitive strategy depends on mapping the environment and constantly monitoring it to be able to capitalize quickly on opportunities or neutralize threats. The focus of this chapter is on mapping the environment. It will show the main aspects of the model for industry analysis and explain the process of forming strategic groups and pressure maps.

Developing Strategies For Competitive Advantage

2011 ◽  
pp. 32-60
Author(s):  
Tamio Shimizu ◽  
Marley Monteiro de Carvalho ◽  
Fernando Jose Barbin
Keyword(s):  
Competitive Advantage ◽  
Competitive Strategy ◽  
Emerging Technologies ◽  
The Other ◽  
Competitive Environment ◽  
Strategic Groups ◽  
Industry Analysis ◽  
Competitive Strategies ◽  
The Real ◽  
Developing Strategies

As in any game, the success of competitive strategies depends on knowing the rules as well as the other players. Nevertheless, in the real competitive environment, the rules are not always clear and can change very quickly, demanding quick responses and making it increasingly difficult to map the moves of the main players. Strong monitoring channels must be maintained to follow changes in the competitive environment and to discern new trends. Changes in the environment can result from emerging technologies or changes in society’s behavior, and thus in clients’ demands. They can also be the result of competitors’ moves in the market. Thus developing a good competitive strategy depends on mapping the environment and constantly monitoring it to be able to capitalize quickly on opportunities or neutralize threats. The focus of this chapter is on mapping the environment. It will show the main aspects of the model for industry analysis and explain the process of forming strategic groups and pressure maps.

scholarly journals The Mutual Benchmarking Method for Smes’ Competitive Strategy Development

2013 ◽  
Vol 5 (2) ◽  
pp. 81-96
Author(s):  
Katarzyna Rostek
Keyword(s):  
Competitive Advantage ◽  
Competitive Strategy ◽  
Competitive Environment ◽  
Strategy Development ◽  
Collaborative Network ◽  
Sustainable Competitive Advantage ◽  
Group Members

Abstract Competitive advantage is a relative feature, evaluated in respect of other competing enterprises. The gaining of sustainable competitive advantage is conditioned by knowledge of own performance and the results of the competitive environment. SMEs have limited opportunities to obtain such information on their own. The method of mutual benchmarking changes this situation by introducing the collaborative network. The aim of the cooperation is to support each of the group members to achieve sustainable competitive advantage, which is the result of a conscious strategy, and not only a matter of chance. This cooperation is based on the collecting and processing of data and sharing information through a common IT platform: for example, a group of Polish SMEs was shown how to implement such a common IT solution and how to provide the information preparing within the proposed service. The whole is a complete proposal for effective support of creating a competitive strategy in SMEs.

scholarly journals Modern approaches to the formation of enterprise competitive strategy

2020 ◽  
pp. 109-120
Author(s):  
Inna Kuznetsova ◽  
Valentyna Gorbatiuk
Keyword(s):  
Competitive Advantage ◽  
Continuous Improvement ◽  
Competitive Strategy ◽  
Sustainable Competitive Advantage ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Advantages And Disadvantages ◽  
Modern Business ◽  
Output Characteristics ◽  
Value Disciplines

The article considers the approaches to the formation of a competitive strategy. The purpose of the article is to systematize existing approaches to the formation of a competitive strategy and highlight modern competitive strategies. The essence of the concepts «strategy» and «competitive strategy» is considered. Based on a critical analysis of the essence of «competitive strategy» concept, three approaches to its interpretation by various researchers are identified: it is aimed at creating a stable position in the market, provides for the creation of a sustainable competitive advantage, and it is aimed at achieving superiority over competitors. Based on the results of interpretations systematization and analysis of the essence of «strategy» concept, the author’s definition of competitive strategy as a direction of forming a competitive advantage for creating a unique value of the product is proposed. The process of choosing a competitive strategy by M. Porter has been analyzed and it has been established that after its development, further continuous improvement is necessary. The process of choosing a competitive strategy by M. Porter is analyzed and it has been established that after its development, further continuous improvement is necessary. The main approaches to the formation of a competitive strategy, which considering modern business trends are investigated: industry positioning, competitive cooperation, value disciplines, evolutionary theory and key competencies. The essence of the considered concepts, their advantages and disadvantages are clarified and two types of competition, typical for these concepts are identified, namely: tough competition; competition and cooperation. A number of competitive strategies, which take into account the specifics of modern enterprises, are investigated and the essence, necessary resources, output characteristics and type of competition for each of them are highlighted. It was substantiated that each of there searched strategies implements one of the basic competitive strategies: cost leadership or focusing. The cost leadership strategy using at domestic enterprises, which is the most acceptable for the modern realities of the functioning and development of business, is proposed,

scholarly journals Competitive Strategy of Sunan Drajat Islamic Boarding School Business in Lamongan

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Tika Diliana ◽  
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Competitive Strategy ◽  
Swot Analysis ◽  
Boarding School ◽  
Qualitative Approach ◽  
Business Unit ◽  
Competitive Strategies ◽  
Economic Independence ◽  
Differentiation Strategy

Pondok Pesantren Sunan Drajat (PPSD) is one of the Islamic boarding schools that has a high spirit of economic independence, by establishing several Institution-Owned Business. This Business Unit seems to be developing its units so that they are spreading domestically and internationally. This is due to strategic management that accommodates business, especially in its competition. The purpose of this study was to determine the competitive strategy of Pondok Pesantren Sunan Drajat Islamic-owned business. This study uses a qualitative approach that aims to explain the competitive advantage strategy of the PPSD business unit and SWOT analysis. The results showed that the PPSD business unit implemented all competitive strategies based on sharia principles, which in carrying out their activities were based on benefit. In conclusion, PPSD Business Unit uses an image of differentiation strategy in marketing for its products to stay ahead in the midst of many similar business.

Key drivers of SMEs export performance: the mediating effect of competitive advantage

2018 ◽  
Vol 22 (2) ◽  
pp. 257-279 ◽  
Author(s):  
Orlando Rua ◽  
Alexandra França ◽  
Rubén Fernández Ortiz
Keyword(s):  
Competitive Advantage ◽  
Small Firm ◽  
Competitive Strategy ◽  
Textile Industry ◽  
Export Performance ◽  
Methodological Approach ◽  
Mediating Effect ◽  
Leadership Strategies ◽  
Competitive Strategies ◽  
Content Type

Purpose With its focus on the context of small firm internationalization, this paper aims to assess the important contribution of strategic determinants that influence export performance (EP), considering the mediating effect of competitive strategy. Design/methodology/approach Based on survey data from 247 Portuguese small and medium-sized enterprises (SMEs) exporting textiles, members of the Portugal’s Textile Association (ATP), this research adopted a quantitative methodological approach, conducting an exploratory and transversal empirical study. Findings The paper finds suggest that entrepreneurial orientation (EO) has a positive and significant influence on differentiation and EP. Moreover, the results also highlight the role of intangible resources (IR) in the design of both differentiation and cost leadership strategies, which drives EP. Finally, absorptive capabilities (ACAPs) are highly related with EP. Practical implications The paper provides empirical evidence that EO, IR and ACAPs are predictors of competitive strategies and EP. Moreover, and alongside with firm’s resources, this study validates that competitive strategy does matters for small firm managers and the development of one type of competitive advantage is also a major performance enhancer. Originality/value This study provides fresh insights into entrepreneurship and strategic management literature, as it considers the importance of multiple factors to SMEs business growth. Moreover, this paper presents empirical evidences of the strategies that small firm managers should pursue and policy makers should support. Finally, this is an original study applied to the Portuguese textile industry.

scholarly journals THEORETICAL PRINCIPLES OF DEVELOPMENT OF COMPETITIVE ENTREPRENEURSHIP STRATEGIES

2019 ◽  
pp. 89-99
Author(s):  
Nataliia Shmalii
Keyword(s):  
Competitive Advantage ◽  
Competitive Strategy ◽  
Continuous Process ◽  
Global Competition ◽  
Competitive Strategies ◽  
Human Needs ◽  
Relevant Today ◽  
Stage Of Development ◽  
Long Run ◽  
The Right

The article is devoted to the research of theoretical bases of formation of competitive entrepreneurship strategies. The current stage of development of the economy and society as a whole is based on constant changes, sharpening of global competition in all its manifestations, continuous process of technical and scientific innovations, limited resources and unlimited human needs, state policy in the field of entrepreneurship, financial market factors, etc. as a consequence for each business entity it is necessary to form and implement its strategy of competitive advantages. After all, the purpose of each enterprise is to receive a reward (profit) as a result of its activity. This issue is particularly relevant today. Therefore, we have analysed the interpretation of the concept of competition and competitive strategy by various economists. The interrelation and interdependence between such economic categories as competition and competitive advantage are justified. The basic approaches to the formation of a competitive advantage strategy have been systematized. The basic competitive strategies of M. Porter, F. Kotler, and A. Little are analysed. These strategies relate to different approaches to the development of a company related to the change of one or more elements: product, market, industry, technology. In order to develop and implement an effective competitive strategy, it is necessary to carry out a detailed analysis of opportunities, resources, market, competitors, to determine the right mechanism by which competitive advantage can generate profit in the long run. With global competition intensifying, competitive advantage is achieved through different methods based on different competitive strategies. What kind of strategy to choose and how to combine these strategies is decided by the enterprise itself, but any of these strategies is aimed at achieving a favorable and long-lasting position in the market, obtaining maximum and sustainable profit, resisting continuous competitive forces in the market.

Promoting organizational success with effective competitive strategy: Examination and analysis of competitive strategies of IBM and DELL within the IT Industry

2020 ◽  
Vol 8 (8) ◽  
pp. 306-320
Author(s):  
Francis Kwadade-Cudjoe
Keyword(s):  
Competitive Advantage ◽  
Competitive Strategy ◽  
Organizational Success ◽  
Effective Strategy ◽  
Competitive Strategies ◽  
It Industry ◽  
Modus Operandi ◽  
Cost Leadership ◽  
Effective Strategies ◽  
Goals And Objectives

Achieving organizational success has always been the bane of businesses, but it is an important requirement for every business. The best approach to achieving this success is to develop a good and effective strategy; the modus operandi for organizational success to achieving competitive advantage. Most organizations work tirelessly to establish strategies to enable the achievement of goals and objectives, but understanding what entails in establishing effective strategies has never been easy. However, once the resources of the organization are identified, and putting together concrete activities to perform on the resources, an effective competitive strategy could be established, which should lead to competitive advantage. Sustaining an organizational competitive advantage is very necessary, so as to create an enabling environment for sustainability, and in addition profitability, whilst pursuing its functions. Fact is, a lot of capital is always expended before a business is founded, and this investment cannot be squandered, but be recouped. Therefore, structuring an effective competitive strategy at the very beginning, is a must for every organization. The generic competitive strategies are cost leadership, differentiation and niche / focus.

Adaptation of hotels to changes in competitive environment

10.12737/7467 ◽  
2014 ◽  
Vol 8 (7) ◽  
pp. 0-0
Author(s):  
Антонина Черкасова ◽  
Antonina Cherkasova
Keyword(s):  
Competitive Strategy ◽  
Hospitality Industry ◽  
Competitive Environment ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Business Changes ◽  
Competitive Forces ◽  
A Company ◽  
Theoretical Foundations

The paper presents a comprehensive study of the theoretical foundations of hotel enterprises’ adaptation in a competitive environment, including the formulated the concept of adaptation in terms of management. The paper also identifies and describes three aspects of the term "adaptation" in relation to objects of the hospitality industry. The author formulats the concept of adaptive competitive strategies of hotel companies, describes the basic competitive strategy options proposed by M. Porter: absolute cost leadership, differentiation, focus, which, according to the author, are potentially successful. These competitive strategies contribute to a sustainable position of a company in the industry for the long term and to achieve advantages over competitors. The author of the article reveals major shortcomings in the formation of competitive strategies of adaptation for hotel companies and suggests a model for the formation of adaptive competitive strategy facilities for the hospitality industry, which relies on the process approach, including the separation of the primary process into a series of sub-processes that have data inputs and outputs. The use of this model for the formation and adjustment of competitive strategies will allow hotel companies to develop effective adaptation competitive strategies to achieve sustainable and profitable position, enabling to resist to the pressures of the competitive forces that must and can determine the competition in the industry, to provide a rapid response to external hotel business changes and to implement responsive actions, and which also can help existing hotel companies to withdraw from the zone of instability and competitively operate in not always positive environmental conditions and to ensure a competitive advantage and long-term effectiveness of the hospitality market.

scholarly journals THE EFFECT OF COMPETITIVE ADVANTAGE AND HUMAN ADVANTAGE ON INDUSTRIAL COMPETITIVE STRATEGY (Case Study: SMIs in Gorontalo Province)

2017 ◽  
Vol 31 (1) ◽  
pp. 307
Author(s):  
Trifandi Lasalewo ◽  
Nur Aini Masruroh ◽  
Subagyo . ◽  
Budi Hartono ◽  
Hari Agung Yuniarto
Keyword(s):  
Literature Review ◽  
Competitive Advantage ◽  
Competitive Strategy ◽  
Structural Equation ◽  
Product Variety ◽  
Equation Modeling ◽  
Competitive Strategies ◽  
Global Competitiveness ◽  
Business Units ◽  
Strategic Role

Small and Medium Industries (SMIs) have a strategic role in the Indonesian economy, as they earn 61.9 percent of the foreign exchange which goes to make up the nation’s Gross Domestic Product, and nationally they are able to absorb 97 percent of the workforce. The Global Competitiveness Report also notes that SMIs serve as the business units that affect every nation’s competitiveness. Considering this strategic role, the selection of a competitive strategy for these SMIs is absolutely necessary. Through an in-depth literature review, this study aims to explore what variables influence the competitive strategy of industries, particularly the SMIs. By using a Systematic Literature Review (SLR) with a total of 31 main literature (articles, papers and books), this study has found two dominant factors that influence industrial competitive strategy: Competitive advantage and human advantage, which are subsequently developed into six independent variables (construct variables), i.e. cost, delivery, product quality, product variety, know-how and innovativeness, with a total of 44 indicators. The results of measurements of the sample of SMIs in Gorontalo Province, using Structural Equation Modeling, found that both competitive advantage and human advantage jointly influence 40.2 percent of the industrial competitive strategies. These results indicate that competitive strategies, such as creating products with unique features, on-time delivery, flexibility in production, and employee involvement in the innovations, are indispensable to SMIs in order for them to produce quality products and be able to maintain their advantage.

Hidden “holes” in the capital of banks and the supply of credit to the real sector of economy

2018 ◽  
pp. 49-68 ◽  
Author(s):  
M. E. Mamonov
Keyword(s):  
Credit Risk ◽  
The Other ◽  
Real Sector ◽  
Capital Management ◽  
Loan Loss ◽  
Short Term ◽  
The Real ◽  
Ex Post ◽  
The One

Our analysis documents that the existence of hidden “holes” in the capital of not yet failed banks - while creating intertemporal pressure on the actual level of capital - leads to changing of maturity of loans supplied rather than to contracting of their volume. Long-term loans decrease, whereas short-term loans rise - and, what is most remarkably, by approximately the same amounts. Standardly, the higher the maturity of loans the higher the credit risk and, thus, the more loan loss reserves (LLP) banks are forced to create, increasing the pressure on capital. Banks that already hide “holes” in the capital, but have not yet faced with license withdrawal, must possess strong incentives to shorten the maturity of supplied loans. On the one hand, it raises the turnovers of LLP and facilitates the flexibility of capital management; on the other hand, it allows increasing the speed of shifting of attracted deposits to loans to related parties in domestic or foreign jurisdictions. This enlarges the potential size of ex post revealed “hole” in the capital and, therefore, allows us to assume that not every loan might be viewed as a good for the economy: excessive short-term and insufficient long-term loans can produce the source for future losses.

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