Sustained Competative Advantage

Question 1

What are the assumptions of most models of competative advantage

Answer 1

That resources are highly mobile and that firms in an industry are practically identical. Assumptions by f.ex porter

Question 2

What are physical capital resources

Answer 2

property pland and equipment, geographic lofcation and access to materials

Question 3

What are human captial resources

Answer 3

training, judgement, experience, intelligence, relationships and insights of individual employees

Question 4

What are organizational capital reosurces

Answer 4

Formal reporting structures, fomral and informal planning, controlling and coordinating systems as well as the formal and informal relationships between the firm and its environment f.ex contracts and brand relations

Question 5

A competative strategy may be copied from a competitor

Answer 5

No, a sustainable competative strategy must be unabled to be effectively copied by competitors. If it can be copied then it is not sustainable since it will go away through the duplication efforts by other firms

Question 6

What are Schumpeter shocks

Answer 6

structural revolutions withing an industry

Question 7

Strategic resources must be immobile and hetrogneus

Answer 7

True

Question 8

Is first movers advantage a sustainable competative advantage

Answer 8

Not usually, for that hetrogenus resources to preserve the lead must be characteristic of the industry for the first move to be a valuable resource

Question 9

What characteristics must a resource have to sustain a competative advantage

Answer 9

it must be valuable by exploiting opertunities or neuralizing threats, it must be rare among current and potential competitors, it cannot be perfectly immitable and there cannot be strategically viable substitutes.

Question 10

Formal strategy planning processes are a source of sustainable competative advantage

Answer 10

False, sort of they in themselves are not since they are quite common and replacable but it is ofthen there these advantages are realized

Question 11

machineas and hardware can usually not be a source of sustainable competative advantage

Answer 11

True, as they can be bought and sold

Question 12

Is the exploitation of sustainable competative advantages compatibel with social welfare

Answer 12

It depends on how you view it. An argument can be made that theese strategies are potentials for increased efficiency and thus profits become efficiency rents rather then a reduction of consumer surplus although they are most defenetly a source of imperfect competition