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SSP Generic Building Blocks of Competitive Advantage
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4
Generic factors
build
competitive
advantage
better
differentiate
products
efficient
in
reducing costs
1.
Efficiency
2.
Quality
3.
Innovation
4.
Customer
Responsiveness
Efficiency
measured
by cost of
inputs required
to produce a given output
the
more efficient
, the
lower
the
cost
of
inputs
(
low -cost competitive advantage
)
utilizing
inputs
in most
productive
way
high
employee & capital
productivity
=
low cost of production
Quality
high quality
products create
brand-name reputation
>allow
charge
a
higher price
Higher product quality result greater efficiency
>
less
employee time
fixing
defective
products
>higher
employee productivity
>
lower unit costs
Innovation
Process
innovation if
new
about
operation
Product
innovation if
new
about
product
Innovation
include advances
in
>
kind
of product
>production
process
>mgt
system
>organizational
structure
>
strategies
developed
Successful innovation give sth
unique
>allows to
differentiate
& charge
premium
price
>allows to
reduce
unit
costs
Customer Responsiveness
give customer
exactly
what they
want
when they want
identify
&
satisfy
customer
needs
improve
efficiency
of
production
process and
quality
of
product
develop
new
product
have new
features
customize
goods to
unique
demand
reduce
customer
response
time/ order
lead
time
>can
charge
a
higher
price
Author
daisykuk91
ID
256273
Card Set
SSP Generic Building Blocks of Competitive Advantage
Description
SSP
Updated
1/13/2014, 1:56:55 PM
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