Strategic advantage Profile for strategic management.pptx

Strategic advantage profile

1. Strategic A d v a n a g e Profile

2. Ever y f ir m has st r at egic advant ages and disadvant ages. For example, lar ge f ir ms have f inancial st r engt h but t hey t end t o move slowly, compar ed t o smaller f ir ms, and of t en cannot r eact t o changes quickly. No f ir m is equally st r ong in all it s f unct ions. I n ot her wor ds, ever y f ir m has st r engt hs as well as weaknesses. The St r at egist should look t o see if t he f ir m is st r onger in t hese f act or s t han it s compet it or s. When a f ir m is st r ong in t he mar ket , it has a st r at egic advant age in launching new pr oduct s or ser vices and incr easing mar ket shar e of pr esent pr oduct s and ser vices.

3. S . A. P. Ther e ar e gener ally f ive f unctional areas in most of t he or ganizat ions. These ar eas ar e: Ø Pr oduct ion or Oper at ion Ø Finance or Account ing Ø Mar ket ing or Dist r ibut ion Ø Human Resour ce & Cor por at e Planning Ø Resear ch & Development

4. Strategic Advantage Factors: Marketing and Distribution Competitive structure and market share: To what extent has the firm established a strong mark share in the total market or its key sub markets? Efficient and effective market research system. The product-service mix: quality of products and services. Product-service line: completeness of product-service line and product-service mix; phase of life-cycle the main products and services are in. Strong new-product and new- service leadership. Patent protection (or equivalent legal protection for services). Positive feelings about the firm and its products and services on the part of the ultimate consumer.

5. Strategic Advantage Factors: R&D and Engineering Basic research capabilities within the firm Development capability for product. Excellence in product design. Excellence in process design and improvements. Superior packaging developments being created. Improvements in the use of old or new materials. Ability to meet design goals and customer requirements. Well-equipped laboratories and testing facilities. Trained and experienced technicians and scientists. Work environment suited to creativity and innovation.