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Competitive Rivalry and Corporate Level Strategy

1 - Applying your understanding of strategic management, explain how business-level and corporate-level strategies are best used to gain a competitive advantage and earn above-average returns.

2 - What are the advantages and disadvantages of competitive rivalry? How can a company use competitive rivalry to its advantage? Provide clear examples.

3 - Explain the differences between mergers, acquisitions, and takeovers. How do you determine which one to use when attempting to gain a competitive advantage over others in your field?

4 - Discuss why companies use acquisitions to achieve strategic competitiveness, and describe some obstacles that prevent successful acquisitions.

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1. The corporate level strategies guide the entire organization. It creates a culture. The business level strategies address the specific needs of the customers. Both the corporate level strategy and business level strategies exploit the core competencies of the business to help the company gain competitive advantage and earn higher than normal profits. Consider the example of Wal-Mart. The corporate level strategy is cost leadership. The company has a culture that supports low cost operations, high turnover of assets, and getting low prices from the suppliers. The business level strategy ensures that products are available to its customers at low prices. This strategy exploits the core competency of Wal-Mart and ensures that the company has competitive advantage and earns above average returns.

2. The advantages of competitive rivalry are that each company strives to perform better than its competitors. The ...

Solution Summary

The response provides you a structured explanation of adversarial price competition among companies . It also gives you the relevant references.