CASE 1: Pizza Hut CASE 2: General Motors Corporation Introduction The Value Chain Primary Activities Support Activities Pizza Industry Value Chain Primary Activities Support Activities Automobile Industry Value Chain Primary Activities Support Activities The Value Chain as Part of a Business System Pizza Hut General Motors Capability Drivers First-Mover Status Scale of Operation Experience Interrelationships Assessing Competitive Advantage First-Mover Advantages Scale and Experience Advantages The Growth of the Internet and Competitive Advantage Diagnosing Pizza Hut’s Capabilities First-Mover Advantages Scale Advantages Experience Benefits Interrelationships Achilles’ Heel of Established Firms Assessing the Financial Position of Competitors Ethical Issues Examining Competitors’ Products Questioning. | strategie management CHAPTER OUTLINE CASE 1 Pizza Hut CASE 2 General Motors Corporation Introduction The Value Chain Primary Activities Support Activities Pizza Industry Value Chain Primary Activities Support Activities Automobile Industry Value Chain Primary Activities Support Activities The Value Chain as Part of a Business System Pizza Hut General Motors Capability Drivers First-Mover Status Scale of Operation Experience Interrelationships Assessing Competitive Advantage First-Mover Advantages Scale and Experience Advantages The Growth of the Internet and Competitive Advantage Diagnosing Pizza Hut s Capabilities First-Mover Advantages Scale Advantages Experience Benefits Interrelationships Achilles Heel of Established Firms Assessing the Financial Position of Competitors Firm Capabilities Assessing Strengths and Weaknesses Ethical Issues Examining Competitors Products Questioning Competitors Employees Using Consultants Engaging in Industrial Espionage Pirating Employees Conclusion Summary Exercises and Discussion Questions WHAT YOU WILL LEARN The strategic tool known as the value chain The use of the value chain in evaluating an organization s internal strengths and weaknesses The differences between primary and supporting value-adding activities The concept of competitive advantage The concept of distinctive competence Some important economic sources of competitive advantage 55 56 PART 1 Building Competitive Advantage Case 1 Pizza Hut1 Pizza Hut a division of Tricon Global Restaurants is the largest seller of pizza in the world. As such it enjoys unique advantages not available to smaller rivals. These advantages have contributed significantly to its success in recent years enabling it to outperform the industry by a considerable margin in both revenue and growth. Among the most important advantages Pizza Hut enjoys as a result of its leadership position are the following Location As the first competitor to establish a facility in many high-traffic areas it has
