explain why the concept of competitive advantage is central to the study of strategic management

Expert Solution

The concept of competitive advantage is central to strategic management study. Here's why:

1. Market leadership: Through competitive advantage, a firm can be able to lead the market by staying ahead of the curve and the competitors. This helps the firm to be seen as a market leader and a significant player in the market.

2. Market share: By leveraging the competitive advantage like better customer service quality, the firm can gain more customers to cater to and hence increase its market share. This helps the firm to achieve its long term strategy.

3. Profitability: By leveraging the competitive advantage like cost efficiency, the firm is able to sure to run the operations in the minimum possible cost and hence increase its EBITDA. This helps the firm to achieve its long term profitability strategy.

4. Sustainability: By leveraging the competitive advantage, the firm is able to become a long-run sustainable firm with improved efficiency and effectiveness. It can take part in CSR and also provide high-quality service to its customers. This helps the firm to achieve its long term strategic objectives.

keosha answered 5 months ago

Competitive advantage is an important concept of strategic planning and healthcare leadership today for stakeholder analysis....

Competitive advantage is an important concept of strategic planning and healthcare leadership today for stakeholder analysis. In this unit’s assignment, you will consider and discuss a specific theory of competitive advantage held by some of America’s leading health systems. For this assignment, address the following questions. What is the resource-based theory of competitive advantage for stakeholder analysis? What are the competitive strengths and weaknesses? As chief executive officer (CEO) of a health system, how could you put this theory to...

1)Explain the concept of competitive advantage and value proposition and how they relate to the overall...

1)Explain the concept of competitive advantage and value proposition and how they relate to the overall business management. 2)Explain environment scanning and the PESTEL checklist for a company’s general environment. 3)Explain the impact of Porter’s “five forces” on industry profits.

Robin Hood Essentials of Strategic Management. The Quest for Competitive Advantage P. 346 Questions (4) 1....

Robin Hood Essentials of Strategic Management. The Quest for Competitive Advantage P. 346 Questions (4) 1. What problems does Robin Hood have? What issues need to be addressed? 2. What strategic options does Robin Hood have? Is continuing with the present strategy an option or is the present strategy obsolete? Explain. 3. What action plan would you recommend to Robin? 4. How should Robin implement the recommended plan? What action steps will need to be taken to make the recommended...

What is Strategic Management? Why is it important? Who is involved? What is meant by competitive...

What is Strategic Management? Why is it important? Who is involved? What is meant by competitive advantage?

How does information and knowledge management link to competitive advantage? Discuss the reasons why or why...

How does information and knowledge management link to competitive advantage? Discuss the reasons why or why not a dominant firm might or might not consider attacking smaller competitors to increase market share?

Is IT a competitive advantage or a utility? Explain

The need for HR to be a strategic partner to sustain competitive advantage is widely espoused,...

The need for HR to be a strategic partner to sustain competitive advantage is widely espoused, but appears to be less often enacted. IT, Finance and even Marketing are all facing similar challenges. What is it about these functions that lend themselves to this criticism? Is it deserved, or simply a result of the fact that they are not part of “operations” end of the business? Why?

Do you agree that simplicity is nowadays a key competitive advantage? Explain why or why not....

Do you agree that simplicity is nowadays a key competitive advantage? Explain why or why not. What other factors do you consider relevant for adding value to customers? Share some experiences about technology products or services that have added value to you as a customer?

Describe comparative advantage, competitive advantage and strategic trade theory. How are they different? Use a real-world...

Describe comparative advantage, competitive advantage and strategic trade theory. How are they different? Use a real-world example or come up with a hypothetical example in your description of each. Which do you feel is better for the global good?

1) How does information and knowledge management link to competitive advantage? Discuss the reasons why or...

1) How does information and knowledge management link to competitive advantage? Discuss the reasons why or why not a dominant firm might or might not consider attacking smaller competitors to increase market share? 2) Companies have to update their strategy on a regular basis but sometimes need to look at radical change, briefly explain these two types of Strategic Change and how they might affect company organization. Define incremental and transformational change. enter academic citations.

Question