Prescriptive and Emergent Strategy: South West Airlines

3903 Words Apr 26th, 2012 16 Pages
University of huddersfield | How A Company/Organisation Attempts To Achieve Sustainable Competitive Advantage | The Application of Relevant Theory to the Eddie Stobart Group | | Author: Andrew Yelland
Student Number: U0970411Course: Transport & Logistics ManagementModule: Strategic ManagementModule Tutor: Dr. Andrew JenkinsModule Code: SHT 4002Date: December 2011 | |

Executive Summary |

This report consults literature from a range of academic resources in order to provide an understanding of strategy, strategic management and how firms achieve and sustain a competitive advantage. The paper will focus on Generic strategies implemented by firms in industry, low cost and differentiation.
Moreover,
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Appendix A, a strategic management process model illustrates and underpins this theory. Henry (2011) continues by stating, “the end result is for the organisation or company to achieve competitive advantage over its rivals in industry”.

2. An Academic Discussion of Competitive Advantage and how Competitive Advantage may be Achieved and Sustained 3.1 What is Competitive Advantage

Competitive Advantage can be described when an individual firm or company has a higher profit rate than the average for its industry. Developing this theory, a firm or organisation achieves a sustained competitive advantage when it is able to maintain this high profit rate over a number of years (Hill; Jones 1998).
Porter (2004) refers to Competitive Advantage as at the heart of the firm’s performance in competitive markets. This perception is further developed by Stacey (2003) who places emphasis on strategic choice and the choice implemented by the firm as the main focal driver in order to secure competitive advantage for the organisation. Stacey (2003) adds to this by stating:
“The key concern of strategic choice theory is to identify, secure and sustain an advantage over competitors such that superior performance will be achieved” (Stacey 2003 pg72). 3.2

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