BUSINESS ADMINISTRATION
PRINCIPLES AND PRACTICE OF MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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strategic dissonance
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strategic inertia
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competitive dissonance
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sustained competitive disarray
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competitive inertia
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Detailed explanation-1: -Competitive inertia is defined as a reluctance to change strategies or competitive practices that have been successful in the past.
Detailed explanation-2: -Differentiation strategy is a strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services [31]. According to Porter [30], if product or service is unique, this strategy provides high customer loyalty.
Detailed explanation-3: -Competitive strategy concerns how to create competitive advantage in each of the businesses in which a company competes.
Detailed explanation-4: -Four factors help the company to establish and retain competitive advantage, namely superior efficiency, quality, innovation, and accountability to customer. Each of these factors are the result of a distinctive competence of a firm.
Detailed explanation-5: -To gain a competitive advantage a company must either perform value creation functions at a lower cost than its rivals or perform them in a way that it leads to differentiation and a premium price. That is, it must pursue the strategies of low cost or differentiation.