Framework for Evaluating Sustainable Market Advantages PPT
This PPT slide, part of the 32-slide Rumelt's Strategy Evaluation Framework PowerPoint presentation, presents an overview of the "Advantage" criterion within Rumelt's Strategy Evaluation Framework, emphasizing how a strategy can establish a durable position in the market. It outlines key components that contribute to a firm's ability to maintain a unique position that rivals find hard to replicate.
The first component is Differentiation, which highlights the necessity for a strategy to offer unique products or services. This uniqueness fosters customer loyalty and long-term preference, essential for sustaining market presence. Cost Leadership follows, indicating that firms can achieve an advantage by producing goods or services at a lower cost than competitors while maintaining quality. This approach allows for competitive pricing or higher margins.
Core Capabilities are also crucial. These are the unique assets or skills that a firm possesses, such as proprietary technology or specialized knowledge, which competitors cannot easily imitate. Barriers to Imitation are discussed next, focusing on strategies that create obstacles for rivals, like patents or brand equity, which protect the firm's advantages.
Lastly, Growth Potential is addressed, explaining how a strong advantage enables a firm to capture significant market share and sustain growth. It positions the firm to dominate niche markets or expand into new ones effectively. The example provided illustrates a car manufacturer developing an electric vehicle with superior battery technology, showcasing how these elements work together to create a sustainable market position.
This slide serves as a foundational guide for understanding how strategic advantages are built and maintained, making it a valuable resource for executives looking to enhance their strategic planning.
This slide is part of the Rumelt's Strategy Evaluation Framework PowerPoint presentation.
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Strategy Development Competitive Advantage Competitive Analysis Strategic Planning Customer Loyalty Leadership
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