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Opportunities for Distinction: Building Competitive Advantage

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CASE 7-Eleven Introduction Routes to Building Competitive Advantage Low-Cost Leadership Strategies Building a Low-Cost Advantage Benefits and Costs of Low-Cost Leadership Strategies Differentiation Strategies Building Differentiation-Based Advantage Benefits and Costs of Differentiation Strategies Focus Strategies Focus-Based Advantages Benefits and Costs of Focus Strategies An Emerging View of Strategy: Mass Customization for Best Value Advanced Manufacturing Technology Modular Product Designs Internet-Driven Distribution Systems New Market Segmentation Techniques Distinctive Competence Revisited and Why Quality Dominates The Role of Distinctive Competence The Importance of Quality Strategy and Competitive Advantage over the Life Cycle Introductory Stage Growth Stage Mature Stage Decline Stage Life Cycle. | strategie management Opportunities for Distinction Building Competitive Advantage CHAPTER OUTLINE CASE 7-Eleven Introduction Routes to Building Competitive Advantage Low-Cost Leadership Strategies Building a Low-Cost Advantage Benefits and Costs of Low-Cost Leadership Strategies Differentiation Strategies Building Differentiation-Based Advantage Benefits and Costs of Differentiation Strategies Focus Strategies Focus-Based Advantages Benefits and Costs of Focus Strategies An Emerging View of Strategy Mass Customization for Best Value Advanced Manufacturing Technology Modular Product Designs Internet-Driven Distribution Systems New Market Segmentation Techniques Distinctive Competence Revisited and Why Quality Dominates The Role of Distinctive Competence The Importance of Quality Strategy and Competitive Advantage over the Life Cycle Introductory Stage Growth Stage Mature Stage Decline Stage Life Cycle Dynamics and Competitive Advantage Ethical Dimension Worthy Need Safe Product Ample Information Summary Exercises and Discussion Questions WHAT YOU WILL LEARN The three types of generic competitive strategies that can be used to build competitive advantage including low-cost leadership differentiation and focus The benefits and costs of pursuing each type of generic strategy The rise of mass customization as a new strategy The value of quality as a key pillar of any competitive strategy The evolution of strategic considerations over a product s life cycle 91 92 PART 1 Building Competitive Advantage Case 7-Eleven1 The food retailing industry has long been dominated by large chains such as Safeway Albertson s and Kroger and regional chains such as Tom Thumb Fred Meyer Randall s H.E.B. Giant Food and Piggly Wiggly. All these large chains tend to follow a similar approach. The established firms operate large stores each designed to serve a given geographical market. By operating large stores they can provide wide merchandise selection and achieve economies of scale and .