Explore BrainMass
Share

Creation of Value and Competitive Advantage

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Achieving competitive advantage
- How does the creation of value lead to competitive advantage?
- How may a firm achieve competitive advantage? Consider strategies of cost leadership, benefit leadership and degrees of focus.
- How does the price elasticity of demand affect a firm's strategic positioning for competitive advantage?
- What factors and strategies allow a firm to sustain competitive advantage? Cite at least one real life example of success and one real life example of failure in your explanation.

International Business
- What additional risks do multinational corporations face, and what additional opportunities do they enjoy when compared with domestic firms?
- what strategies may a multinational corporation use to best take advantage of the opportunities discussed above?
- What strategies may a multinational corporation use to best mitigate the risks discussed above?
- How does achieving competitive advantage at an international level differ from achieving competitive advantage at a domestic level? How may a firm strategically position itself for international competitive advantage? Cite at least one example or strategy specific to international business.

© BrainMass Inc. brainmass.com October 17, 2018, 4:35 am ad1c9bdddf
https://brainmass.com/economics/international-policies/creation-value-competitive-advantage-469235

Solution Preview

Achieving competitive advantage

- How does the creation of value lead to competitive advantage?
Creation of value leads to competitive advantage because the firm implements a value creating strategy that is not being implemented by other competitors. Competitive advantage is the strategic advantage that one business entity has over competitors in the industry. For example, a firm creates value for its customers by selling to them a superfast tablet computer; it gains competitive advantage in the computer tablet industry. The company has been able to create value by providing a tablet that is much faster than products provided by competitors. This value to customers gives the firm competitive advantage.

-How may a firm achieve competitive advantage? Consider strategies of cost leadership, benefit leadership and degrees of focus.
A firm may achieve competitive advantage if it has cost leadership. In other works its cost structure is such that it cannot be easily duplicated by its competitors. For example, a firm enjoys economies of scale; it gains competitive advantage because of cost leadership.
A firm may achieve competitive advantage because of the benefit that it can provide that others cannot duplicate. This benefit can accrue because of the location of the firm, the special skills its personnel possess, or the technology it has. For example, a hotel is located close to the legislative assembly (place where laws are made) of a country. Because of the unique benefit this hotel provides, it has competitive advantage.
A firm may achieve competitive advantage because of the degree of focus it has. Its focus gives the firm a strategic advantage. For example, a publishing firm focuses entirely on medical books. The focus of this firm gives it several strategic advantages that help it attain sustained competitive advantage.

- How does the price elasticity of demand affect a firm's strategic ...

Solution Summary

Competitive advantage is discussed very comprehensively in this explanation..

$2.19
Similar Posting

Strategy and Value Creations in traditional industries

Please help with an analysis of the simulation (link provided below). Give specific details of the results obtained and alternatives you looked at while playing the simulation. Discuss why one decision is more appropriate than others.

Link to simulation: http://info.umuc.edu/mba/public/TIS/economics/market/economics_market_part1.swf

Note: In my analysis I want to include various alternatives. Try alternatives. In your response please look at other choices and try to explain the difference in results. Please cover the following questions in your response:

1.Describe the competitive advantage/unique resources Quasar Computers possesses in the monopoly market scenario. To this end, describe why intellectual property rights are important in a capitalistic market system. How might a firm hedge against an expiring patent so they can maintain some sort of competitive advantage into the future?
2.In an oligopoly, firms try to avoid competing on prices, and probably try to avoid competing in other aspects to the marketing mix (products, promotion, placing). Is this possible in this market?
3.In a monopoly scenario, the firm does not need to worry about generic strategies. However, as firms move through successively more competitive market structures, they need to consider which type of generic strategy to implement. After referring to Porter's Generic Strategies, please comment on which strategy you recommend depending on the oligopoly, monopolistic competition, and perfect competition scenarios. Please justify.
4.Consider the perfect competition scenario. Based upon Porter's Five Forces, rate each of the forces as high-medium-low and justify your rankings. In a perfect competition scenario, is the computer industry attractive? Why, or why not?

Please provide response in about 4-5 pages.

View Full Posting Details