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Understanding, achieving and sustaining competitive advantage - Coggle…
Understanding, achieving and sustaining competitive advantage
Arie de Geus suggests that the ability to learn faster than our competitors...may be the only sustainable competitive advantage
Each organisation needs to take seriously as part of its development of strategy, the nature and structure of the resources of the organisation and in particular the need for a continuous learning approach to allow the organisation to evolve
Lynch (2015) suggests that competitive advantage is derived from the interaction of a number of core operational aspects
Differentiation
The recongition of an organisations unique features or attributes often represented through branding
Low costs
The ability to source resources at a lower level of cost than competitors (eg bulk purchasing power)
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Culture, leadership and style
The dynamic and charismatic bringing together of employees in a way that differentiates the organisation from its competitors
When appropriate an organisation is able to achieve competitive advantage through the building of strategic alliances within its supply chain, these might be formal or informal and can lead to signfiicant cost advantage
Many organisations have found that they can create an agile and more focused approach by removing layers of unneccesary management that have often been built over many years. Recognition of where a task is best controlled in the supply chain can add value to all participants
Horizontal integration allows competing organisations to work together to procure a greater critical mass from their suppliers
Eg sourcing alliance between Tesco and Carrefour to allow more effective purchasing and the maintenance of low prices to the end consumer
Vertical integration allows an organisation to work with its suppliers or customers to create a more efficient and competitive end to end supply chain
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