BA4010- Mod 4-Meyantae Johnson.docx - Meyantae Johnson BA 4700 February 9 2019 Module 4 Question 3 p 157 Discuss the three types of competitive

BA4010- Mod 4-Meyantae Johnson.docx - Meyantae Johnson BA...

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Meyantae Johnson BA 4700 February 9, 2019 Module 4 Question 3, p. 157: Discuss the three types of competitive advantage. The three types of competitive advantage are cost leadership, differentiation, and people or human capital. Cost leadership is the ability of a company to provide their products at a more reasonable value than their competitors through the use of internal cost-reducing measures such are utilizing foreign manufacturers, creating a cost savings and thereby offering a less expensive product. Differentiation is what a company produces and or provides within their relative market being different than that of their competitors setting it apart from others within their market. Finally, we have a company’s workforce or its human capital, which leads to a more committed workforce and inevitably a more successful organization. Employees that are engaged and have knowledge not possessed by those within other companies, they set a company apart from its competitors and give them an advantage because their workforce is unique and unable to be copied by another. Can a company achieve all three of them? It is very possible for a company to achieve all three within their company. One company that has continued to sustain a competitive advantage in all three areas is the cell phone provider, Samsung. After Apple’s launch of their latest IPhone the company was set apart in its market, however; it could not maintain the advantage against Samsung. Once Apple’s product and shares increased, Samsung chose to regain their competitive advantage through offering less expensive phones that are still high quality compared to those being offered by Apple. This displays the possibility of achieving all three types of competitive advantage and further adds that if a company cannot maintain an advantage within their market they are likely to fail. Question 19, p. 158: Discuss the process of strategy formulation. The process of strategy formulation involves the need for a company to outline details of the company’s focus and align it with the objectives and goals of the company. When formulating a strategy, it is essential that a company first begin by defining its mission. The mission is what the company seeks to do or its purpose. The next step in the formulation is for a vision statement to be created. This vision statement should be the inspiration of the company in its future endeavors. Finally, a company should outline its values and what is important for them to accomplish and/or gain through their business. The values of the company are stimulated by the policies a company employs along with the attitudes surrounding the policies.
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