Other
MNM3709 EXAM PRACTICE
- Institution
- University Of South Africa (Unisa)
Examination-practice-chapter-8
[Show more]
Content preview
CHAPTER 8Question Define the term sustainable competitive advantage (5)
Definition of a sustainable competitive advantage
To be competitive, survive and grow in the market, the organization must have competitive advantages
over its rivals. This advantage must be sustainable over a certain period. A sustainable competitive
advantage can be defined as “the ability to deliver superior value to the market for a protracted period
of time”.
Question Distinguish between the following terms competitive advantage and core competency and
key success factor (8)
The difference between a sustainable competitive advantage (SCA), core competency and a key
success factor (KSF)
According to Kotler, a core competency has three distinctive characteristics, namely that it is a source of
competitive advantage, it has a wide variety of applications, and it is difficult for competitors to imitate.
- Therefore there is no key distinction between a core competency and a competitive advantage.
- Kotler distinguishes between a sustainable competitive advantage (SCA) and key success factors
(KSF).
- The difference between the two is that a KSF consists of competitive skills or assets that are needed
to compete successfully in the market (e.g. large food retail needs the right location, enough store
space, ample parking etc). SCA are necessary in order to outperform the competition e.g. economies
of scale which provide the organizations with unbeatable cost advantage.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LLL56. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R85,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73243 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now