The Fundamentals

Question 1

What is a Competitive Strategy?

Answer 1

A Firm’s long-term plan to achieve superior returns in its Industry.

Porter, Competitive Strategy — P. 22.

Question 2

What are the Operational Components of a Competitive Strategy?

Answer 2

• Product Suite.
• Finance & Control.
• Labor.
• Market Entry.
• Supply Chain Management.
• Manufacturing.
• Distribution.
• Marketing.
• Sales.
• Research & Development.

Porter, Competitive Strategy —P. 23.

Question 3

Which Contextual Factors influence the Formulation of Competitive Strategy?

Answer 3

• Managements’ Personal Values.
• Firm’s Strengths and Weaknesses.
• Industry Threats and Opportunities.
• Socio-Political and Economic Environment.

Porter, Competitive Strategy —P. 24.