Conclusions
Through looking at the many examples of competitive advantage that we have presented on this website, planners should be able to achieve a good understanding of the types of strategies and models that are available. Below are some of the questions that firms must ask themselves before embarking on a new strategy. Once a firm has conducted a thorough internal and external evaluation they can find the strategy that is most suitable for their goals.
Some questions your group should ask during the evaluation and planning process:
What are my firm's core competencies?
Where are there gaps in the available products in my industry?
Are there unserved customer needs that our firm can fill?
Are there market segments that are not being served?
Can we create a new market segment?
Where can we integrate our value chain to maximize profitability and stability?
What business units can we add to hedge our risk against market shocks?
Can we identify partners who can help us achieve our project goals?
Are there competitors that are attractive for us to acquire?
Can we streamline our production and logistical processes to minimize our costs?
How can we create a superior customer service experience?
Can we sustain our strategy, are their risks from other competitors?
After a firm has crafted a strategy they must pay close attention to communicating it to the organization's stakeholders. These include the employees, stockholder, and customers. Failure to bring these parties on-board may result in a difficult implementation. Once implemented the firm must create a set of metrics to monitor the success of the strategy. These metrics should be consistent and measurable.
Sustaining the strategy over the long-term is a test of the management skills of the strategy team. The firm's competitors are certain to react to the new strategy and seek to take advantage in gaps created in the marketplace or to replicate successful ideas. Thus it is important to consider a competitive advantage strategy to be a constantly evolving and adaptive plan.
Some questions your group should ask during the evaluation and planning process:
What are my firm's core competencies?
Where are there gaps in the available products in my industry?
Are there unserved customer needs that our firm can fill?
Are there market segments that are not being served?
Can we create a new market segment?
Where can we integrate our value chain to maximize profitability and stability?
What business units can we add to hedge our risk against market shocks?
Can we identify partners who can help us achieve our project goals?
Are there competitors that are attractive for us to acquire?
Can we streamline our production and logistical processes to minimize our costs?
How can we create a superior customer service experience?
Can we sustain our strategy, are their risks from other competitors?
After a firm has crafted a strategy they must pay close attention to communicating it to the organization's stakeholders. These include the employees, stockholder, and customers. Failure to bring these parties on-board may result in a difficult implementation. Once implemented the firm must create a set of metrics to monitor the success of the strategy. These metrics should be consistent and measurable.
Sustaining the strategy over the long-term is a test of the management skills of the strategy team. The firm's competitors are certain to react to the new strategy and seek to take advantage in gaps created in the marketplace or to replicate successful ideas. Thus it is important to consider a competitive advantage strategy to be a constantly evolving and adaptive plan.