Marketing

Debra Brown

MGT/498 – Strategic Management

SB10BSM12

Instructor: Robert Paramo

June 29, 2011

Competitive Advantages Paper

Several companies have knowledge to advance in the business world by coming up with clever ideas. Some depend on their refined public relations department, and their marketing operations to exhibit an approach in which the organization can stay in front of its rivals. Then there is a small amount of businesses that know-how to respond to changes in the market, along with the trends of their products and services. Of these businesses, only a small number of them will be able to deliver a competitive advantage ahead of its industry, and the expectation of their consumers in a timely fashion. With environmental scanning, companies continue to work and improve their business by keeping a competitive edge over its entrants, and prove to its customers that their products and services are consistent different from the competition.

Companies should be able to identify not only their external environment for possible opportunities and threat, but not only its internal environment for strengths and weaknesses into the business as well. One way a company could sustain a competitive advantage within its organization is through Michael Porter’s models. These models consist of: “threat of new entrants, rivalry among existing firms, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and relative power of other Stakeholders” (Wheelen & Hunger, 2010) Pg. 110, Para 1. Through Porters’ Forces Models, businesses will be able to establish a long-term success within the marketplace.

Businesses must be willing to include an organizational analysis that will identify their “resources, capabilities, and competencies to ascertain whether they are internal strategic factors, -- that is, particular strengths and weaknesses that will help determine the future of the company” (Wheelen & Hunger,...