Overview
1: Competitive Advantage, Resources, and Capabilities
Cost Leadership requires finding and exploiting all sources of cost advantage, selling a standard, no-frills product to achieve competitive advantage.
Differentiation requires providing a unique product/service, that is more valuable to buyers than the low-cost product/service to achieve a competitive advantage.
Porter believes the decision whether to be a Cost Leader or a Differentiator determines how a Firm treats its customers. Do you agree with him? Why or why not?
Is the company you work for a Cost Leader or a Differentiator? Or do you believe it is actually something else? Provide at least one specific example, supporting your choice. How does this choice affect your company’s competitive advantage? Do you believe this is truly the best choice of model for your company? Why or why not? Be specific.
What were your personal experiences/thoughts, regarding your company’s choice of Cost Leader, Differentiator, or some other model philosophy, the first time you ever truly thought about these distinctions? Have your personal experiences/thoughts regarding your company’s choice changed since that time?
1: Value Chain, Organizational Structure, and Management Systems
How is the company you work for structured: Functional Structure, Multidivisional Structure, or Matrix Structure? Support your answer with specific examples.
How does your company’s organizational structure affect its competitive advantage? Provide at least one specific example of your company’s competitive strengths, due to its organizational structure. Provide at least one specific example of your company’s competitive weakness, due to its organizational structure.
Do you believe this type of organizational structure is truly the best choice for your company currently? What about in five years’ time? Why or why not?