Assessing Advantage: A Framework for Diagnosing Competitive Superiority

Abstract

Strategy is about seeking new edges in a market while slowing the erosion of present advantages. Effective strategy moves are grounded in valid and insightful monitoring of the current competitive position coupled with evidence that reveals the skills and resources affording the most leverage on future cost and differentiation advantages. Too often the available measures and methods do not satisfy these requirements. Only a limited set of measures may be used, depending on whether the business starts with the market and uses a customer-focused approach or alternatively adopts a competitor-centered perspective. To overcome possible myopia, the evidence of advantage should illuminate the sources of advantage as well as the manifestations of superior customer value and cost superiority, and should be based on a balance of customer and competitor perspectives.

Top management team impact on strategic assets accumulation capabilities

“…Sustainable competitive advantage ± in the RBV literature, competitive advantage is viewed from the perspective of the distinctive competences that give a competitive edge over its competitors (Barney, 1986a;1986b;Day and Wensley, 1988;Hitt and Ireland, 1985;Lippman and Rumelt, 1982;Reed and DeFillippi, 1990). An organization is viewed as a bundle of specialized resources that are deployed to create a privileged market position (Barney, 1986c;1988;Dierickx and Cool, 1989;Rumelt, 1984;Wernerfelt, 1984Wernerfelt, , 1995.…”

Marketing culture to service climate: the influence of employee control and flexibility

“…Firms have done this is by increasing the value they provide customers through the services they offer (Gebauer et al, 2011;Karmarkar, 2004). Although the benefits of providing superior service are well understood (Day and Wensley, 1988;Zeithaml et al, 1996), the mechanisms through which firms can achieve such service are not. We explore the mechanisms that facilitate superior service, and thus, a competitive advantage for firms.…”

Strategic marketing research

“…In strategic decision-making, management has to anticipate promising and threatening developments in its environment, while taking into account the internal strengths and weaknesses of the organization. The aim is to secure existing competitive advantages and possibly to create new durable competitive advantages given these strengths, weaknesses, opportunities and threats (Day and Wensley 1988). Therefore, a strategy can be described as a course chosen by an organization either implicitly or explicitly, aiming at realizing the objectives formulated and considering the long-term fit between one's own organization and the environment.…”