Competitive Advantage Economic Strategy

Competitive Advantage Economic Strategy: A firm is said to have a competitive advantage when the company has something that is not owned by a competitor, do something better than other companies, or capable of doing something that is not able to be done by other companies.

Three Alternative Models Competitive Advantage Economic Strategy:

1. Industrial-Organization, or I/O
* Learn the external environment
* Select an attractive industry
* Formulate strategies
* Develop and obtain the necessary assets
* Implementation strategies
* Use the power companies to implement strategies
* Trying to reach the performance above the industry average

2. Resource-Based View or RBV
* Identify resources company
* Determine the company's capabilities
* Determine how resources and capabilities companies can create competitive advantage
* Location an industry with opportunities that can be exploited
* Select the best strategy to exploit the resources and capabilities in industrial environments
* Implement the chosen strategy in order to outperform competitors and earn above industry average

3. Model Guerrilla
* Various kinds of disturbances are significant and not expected to hamper the company to achieve a sustainable competitive advantage
* An organization that managed to be clever in adapting to any changes that occur

[Business Blog SEO | Competitive Advantage Economic Strategy]