Successful Companies: Only Three Rules Needed?

Competitive Advantage
Knowledge Center

 

Next Topic

Competitive Advantage > Best Practices

Anneke Zwart, Student (University), Netherlands
Raynor and Ahmed did a statistical study of a large amount of companies and discovered that just 3 seemingly easy rules are consistent with successful companies and their strategic choices: 1. Better Before Cheaper. Companies can choose either a way of attracting customers with relatively lower prices; or companies could focus on non-price advantages such as design, superior branding, exceptional functionality, sustainability or convenience. Keeping in mind that an organization cannot afford to ignore the price position and vice versa, in most cases the latter choice causes exceptional performance. And if the competitive environment changes, one can always choose to reduce the price at that moment and still follow the rules established. Nevertheless, focusing on the non-price features by companies goes together with challenges. First, there is an everlasting battle between rivals that have figured out each others’ formula and find improved formulas for success. Another challenge is (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


 
More on Competitive Advantage
Summary
Forum
Weaknesses of Porter's Three Basic Types of Competitive Advantage
🔥Is Superior Value to Customers a Competitive Advantage?
Why are Firms Different? Why Successful Firms Differ?
The Role of AI in Competitive Advantage
Best Practices
🥇Quotes Competitive Advantage
🥈10 Routes to Competitive Advantage
🥉Case studies in "Cost Leadership"
Stuck in the Middle?
How Can Logistics Help to Achieve a Competitive Advantage?
Changing from a Cost Leadership Strategy Into Differentiation
Competition versus Cooperation
Competitive Advantage or Die?
What is Competitive Advantage?
Competitive Advantage in a Monopolistic Market?
Life Cycle Approach to Competitive Advantage
Health/Fitness Club Industry Analysis
Focus your Efforts in Building Competitive Advantage
What are the Risks of a Differentiation Strategy?
Competitive Advantage in Tough Times
4 Stages of Hypercompetition
Knowledge Management is more important than CA
Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?
Successful Companies: Only Three Rules Needed?
Special Interest Group Leader

Are you an expert in Competitive Advantage? Sign up for free


Competitive Advantage
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.6 - Last updated: 27-10-2020. All names ™ of their owners.