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Essay / Research Paper Abstract
This 5 page paper looks at the way in which the analysis of a industry by a sector matrix can give a greater understanding and lead to the enhancement of competitive advantage. To illustrate this the paper uses the food retail sector. The bibliography cites 5 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEmatrix.doc
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Unformatted sample text from the term paper:
tells us that a company must develop a competitive advantage. There are two forms of competitive advantage in this model, that of cost advantage and that of advantage by differentiation.
The cast advantage is gained by the company that can produce the goods with the best cost structure, this means they are in a strong position regarding their profits. However,
for this to be an advantage only a single company can occupy this position in any sector. Differentiation means that an advantage is gained by the product being different to
the competing products, in this way the company may compete by providing different goods or services not available in other brands. This may then be seen as giving an advantage,
additionally many companies may compete in this manner (DAveni, 1999). When a company is looking to determine strategy by the utilization of a
competitive advantage it needs to consider the market place and its one competencies to ensure that there is the most suitable match (Stalk et al, 1992).
The resources will also be a key component of the competitive advantage a company may develop. Companies with good development techniques and research department may adopt
a first mover advantage which they aim to use to establish themselves in a market place, once established they may even adopt almost military like tactics to retain the position
(Quinn et al, 1998). To understand this it is best first to understand how a market is made up in the different levels
and the different consumers which are aimed at. In this way the company cal look at what the market[lace current offers and where there is the greatest potential that the
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