5.3 Understanding, achieving and sustaining competitive advantage

Question 1

Arie de Geuss in Living Company (1999) said:

“the ability to learn faster than our ___________ may be the only sustainable competitive advantage.”

Answer 1

competitors

Question 2

Lynch (2015) suggests competitive advantage arises from the interaction of core aspects including:

• differentiation
• low ______
• high performance / technology
• quality
• service
• culture, leadership and style

Answer 2

costs

Question 3

What is horizontal integration?

Answer 3

Working with competitors to gain an advantage / improve service.

Question 4

What is vertical integration?

Answer 4

Working with suppliers or customers to create a better product/service.

Question 5

Jay Barney (1991) developed the VRIO framework. What does VRIO stand for?

Answer 5

Value
Rarity
Inimitability
Organisational sustainability

Question 6

According to Barney (1991) which attribute of an organisation is determined by

“the ability of the organisation to address opportunities and threats?”

Answer 6

Value

Question 7

According to Barney (1991) which attribute of an organisation determines

“the ability to deter or prevent competition”?

Answer 7

Rarity

Question 8

According to Barney (1991) which attribute of an organisation determines

“the position in the market at any particular time”.

Answer 8

Inimitability

Question 9

Barney (1991) defined which attribute of an organisation as:

“the ongoing expectation of customers of support and sustenance for a product or service”.

Answer 9

Organisational support.