Assessing Sources of Strategic Advantage PPT
This PPT slide, part of the 23-slide 10 Sanity Tests for Strategy Development PowerPoint presentation, focuses on evaluating the sources of advantage within a company's strategy, emphasizing 2 key concepts: positional advantages and special capabilities.
Positional advantages are described as rooted in structurally attractive markets. These advantages create an asymmetry between entities inside and outside the market, suggesting that certain market conditions can provide inherent benefits that are not easily replicable by competitors. This implies that understanding market dynamics is crucial for leveraging these advantages effectively.
On the other hand, special capabilities refer to unique resources that a company possesses, which confer distinct benefits. These capabilities can include specific competencies that the organization excels in, such as innovation or stakeholder management. The slide highlights that while these capabilities are powerful in creating an edge, they are not easily traded or shared, making them a vital asset for the company.
The slide stresses the importance of these special capabilities being abundant within the organization, but scarce in the external environment. This duality is essential for ensuring that the company can maintain its edge over competitors.
Additionally, the slide suggests that bundling activities together can create a more complex advantage that is harder for competitors to replicate. This complexity adds a layer of protection against competitive pressures.
The example provided illustrates a successful discount grocery retailer that redesigned its business system, making it difficult for competitors to copy the entire system. This reinforces the idea that a well-thought-out strategy can create significant barriers to imitation. Overall, the slide serves as a reminder that a dynamic view of strategy is necessary, as competitors will always seek to exploit vulnerabilities.
This slide is part of the 10 Sanity Tests for Strategy Development PowerPoint presentation.
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