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Good Strategy is ‘a proposed that is ‘coherent and successful

Great Strategy is simple, appropriate, unexpected, coherent and very successful

Bad Strategy is:

- A strategy that does not or cannot define the key challenge needing to be faced

Strategies can be:

1) Big:

- Nortel repositioning move to fiber-optic networks

2) Small:

- Make furniture self-assembly by Ikea

3) Mishandled / Misconceived

- Not embracing online shopping by Canadian Tire

To be valuable, competitive advantages need to be exploitable, or in other words, lead to realized economic advantage (i.e. give rise to greater shareholder wealth creation though stronger financial performance that results in an improved financial position) one company’s competitive advantage is other companies’ competitive disadvantage.

Clearly, having a situation where in the long-term customers prefer your company’s offering over the that of your competitors is strategically most important. However, all companies need to pursue this long-term strategic goal by whatever legal means they can, which necessitates that in the short and medium term they work diligently to exploit every advantage they have while simultaneously working to mitigate or offset all of their disadvantages.

Market Competitive Advantage is a circumstance that exists when a firm offers a product or service that is perceived by customers to be superior to those of its competitors, which typically leads to the firm selling more than its competitors and/or being able to set a higher selling price which allows them presumably to enjoy greater profitability.

>> 3 Dimensions of Market Competitive Advantage:

1) Economic (i.e. Price/Value) > 2 options are: a) Offer Lower Price for comparable feature set. b) Offer Better Value (i.e. quality) for comparable price

An economic competitive advantage is usually production cost dependant because a price/value ratio better than the competiton is achieved when an offering has either better functionality, efficiency and/or features in comparison to its cost (i.e. customer sales price) than does the offering of the competition

2) Differentiation > 2 options are: a) Provide Unique Offering Attributes b) Provide Unique Service Features A differentiation competitive advantage is usually innovation and/or company culture dependant, as differentiation is achieved when, compared to what the competition offers, the company’s offering has either unique service features or notable product attributes that the