How does a firm develop and execute a distinctive strategy that enables it to create and sustain competitive advantage over its rivals? As you seek the answer to this question, you will develop an in-depth understanding of how and why some firms are able to generate superior economic returns... as well as why others stumble and fail.
To build and sustain competitive advantage, companies have to understand their competitive environment. They must be able to assess the forces that shape profitability in their industry, and they have to recognize the threats and opportunities in that environment. Moreover, building a sustainable advantage requires the establishment of a distinctive competitive position in the marketplace. In this program, we will examine the attributes of an effective strategy, as well as the typical characteristics of flawed and unsuccessful strategies.
Many successful firms falter because they fail to recognize disruptive threats, innovators that bring a different business model as well as a new product or service to the marketplace. We will explore why incumbent firms have such a challenging time dealing with disruptive innovation.
Finally, we will take a look at the issue of diversification. Why do some companies expand their scope, choosing to operate multiple businesses in different product markets? What advantage might these firms accrue by diversifying their product lines, and what risks do they encounter by doing so?
This program will offer key insights that enable you to view your company's strategy and your competitor's behavior in a whole new light. Moreover, it will provide you important frameworks that can help you make decisions at all levels that build and enhance your firm's competitive advantage.
Evaluating the Competitive Environment
Cola Wars, Fitness Centers, Personal Computers, Airlines, Pharmaceuticals
Building and Sustaining Competitive Advantage (1/3 of time)
Case Study: Trader Joe's, Ryanair, and Netflix
Diversification and Synergies
Case Study: Disney, GE, Berkshire Hathaway