Introduction to Competitive Advantage

Read this section for an understanding of competitive advantage and the role technology can play in sustaining a competitive advantage. While a bit dated, the principles remain the same, as do the processes and understanding needed to execute them. Complete the exercises at the end of this section. Also, answer the following questions in your notes: What is strategic positioning? How might technology be used to achieve strategic positioning?

Introduction

Questions and Exercises

  1. What is operational effectiveness?
  2. What is strategic positioning?
  3. Is a firm that competes based on the features of technology engaged in operational effectiveness or strategic positioning? Give an example to back up your claim.
  4. What is the "resource-based" view of competitive advantage? What are the characteristics of resources that may yield sustainable competitive advantage?
  5. TiVo's got a great brand. Why hasn't it profitably dominated the market for digital video recorders?
  6. Examine the FreshDirect business model and list reasons for its competitive advantage. Would a similar business work in your neighborhood? Why or why not?
  7. What effect did FreshDirect have on traditional grocers operating in New York City? Why?
  8. Choose a technology-based company. Discuss its competitive advantage based on the resources it controls.
  9. Use the resource-based view of competitive advantage to explain the collapse of many telecommunications firms in the period following the burst of the dot-com bubble.
  10. Consider the examples of Barnes and Noble competing with Amazon.com, and Apple's offering iTunes. Are either (or both) of these efforts straddling? Why or why not?