Chapter 3 & 4

1546 Words Apr 28th, 2012 7 Pages
Chapter 3 #2 - When is a company's competitive advantage most likely to endure over time? A company's competitive advantage is most likely to endure over time when the company has built barriers to imitation, which make it difficult for a competitor to copy the company's distinctive competencies. Another element needed is the ability to quickly react to changes in the customer's needs and have a high absorptive capacity in order to identify, value, assimilate, and use new knowledge. Lastly, the company needs to have industry dynamism and be able to keep up with the rapidly changing environment with new innovative products. Company's need to be constantly protecting their investment from imitators, creating new innovative products and …show more content…
Distinctive competencies of Southwest Airlines are the ability to use their resources and capabilities effectively. These distinctive competencies shape the strategies that Southwest Airlines is trying to achieve, which leads them to competitive advantage and superior profitability. Southwest Airlines has superior profitability because they are able to differentiate their services by lower airfare, better on time schedule, travel routes that do not route passengers through hubs and take them directly to their destination, and a flexible and motivate workforce.
Chapter 4 #1 - How are the four generic building blocks of competitive advantage related to each other? Each of the four generic building blocks is directly related to lowering cost structure of a company, increase competitive advantage and increase profitability.
Chapter 4 #2 - What role can top management play in helping a company achieve superior efficiency, quality, innovation, and responsiveness to customers? Top management must be the foresight of the company and be willing to accept input from any source that proves to be of benefit. If superior efficiency is to be achieved, managers must know the extent of the economy of scale as well as where diseconomies of scale start. Managers must carefully monitor the efficiency of manufacturing to ensure superiority. For managers to achieve

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