Tuesday, May 31, 2011

Strategy - 10

In today's blog we talk about the concept of "Competitive Advantage", we have done so in the earlier blog and here we take a different way of explaining the same thing to gain more clarity about the concept.

A firm gains a competitive advantage when its actions in the industry or market create economic value and when few competing are engaged in similar actions. What makes the competitive advantage possible for a particular theoretical strategy is the theory's ability to follow the underlying economic process of the industry or the market and very few competitors share this theory or are unable to act up on it completely.

One thing every company needs to remember is, when they begin operations they only have new and untested theories about how to compete successfully in the industry. It is only through its successful implementation that these companies are able to succeed.

Read in Kannada

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