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How Sustainable Is Your Competitive Advantage ?
Transcript of How Sustainable Is Your Competitive Advantage ?
A geographical advantage
A developed network
Brand loyalty and reputation of the firm
De Beers controls the demand and the supply,
and therefore can fix the price Pierre LECAT Louis LUCAS de COUVILLE Louise BORÉAL Valeriya BONDARENKO
Carla SALLERON Marie-Charlotte OVIZE How Sustainable is Your Competitive Advantage ? Manager, keep it in mind... It’s not easy and it
takes practice ! define and improve FEW critical business process strategic control system frame-breaking
diversification Slow-Cycle Resources Patents and trademarks Class 1: other types of slow-cycle resources Standard-Cycle Resources History Sustainability Focus for strategy 1776 80's 1817 Absolute Advantage
Productivity Comparative Advantage
- Internal Trade-off Competitive Advantage
- Results and Production
- Importance of resources A sustainable
competitive advantage Same industry, different sustainabilities Core capabilities Complementary assets
for innovation Anticipation • Environment & Resources Organization
• Internal Organization
• The Brand
• Product life-cycle Several parameters Class 2 illustration - McDonald's sustains its competitive advantage Market Pressures : - Direct competition
- Extended period Class 2 : Standard resources - Discipline
- Mass market
- Technological innovation
- Economy of scale
Class 1 : Slow-Cycle Resources
Class 2 : Standard-Cycle Resources
Class 3 : Fast-Cycle Resources A few words about Competitive Advantage Intense competition, based mainly on innovation
Shorter product life cycle
Unsustainability of competitive advantage
Market scope: overlaps traditional markets
Price change: negative Class 3 : Fast-Cycle Resources Firms that cannot sustain their competitive advantage First mover advantage is temporary, and no integrating framework for sustainability
Loads of pressures Illustration: The smartphone industry Strategic priorities to maintain competitive advantage How Apple managed to stay leader in the smartphone industry?
Market timing and intelligence
Frame-breaking Conclusion A few elements of perspective Importance of sustainability The principle of interdependence Organizations and Markets differ in their evolution Pursuing new ways to compete, and changing one's culture New technologies = competitive advantages made easier = necessity to sustain them Current context of economical crisis “Success comes by playing the rules of the game so completely that rivals are relegated to playing catch-up. Strategy – the search for advantage – becomes the means for guiding organizational growth and innovation ” Final word
2. Management & Competitive advantage 1. Resources patterns What is a Competitive advantage ? Conclusion Installed customer based Proprietary knowledge • Rivalry
• Product life cycle
• Market scope Questions ? Product Life Cycles