Submitted by: Submitted by Maiquer
Views: 650
Words: 2673
Pages: 11
Category: Business and Industry
Date Submitted: 05/15/2012 05:40 AM
Table of Contents
1. Introduction
Page 3
2. Competitive Advantage
Page 4
3. United Parcel Service
Page 7
4. Conclusion
Page 10
5. References
Page 11
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1. Introduction
Competitive advantage is defined by a multitude of academics, certainly not
limited to those offered in lecture notes;
“The significant advantages that an organisation has over its competitors.
Such advantages allow the organisation to add more value than its
competitors in the same market” (Lynch, 2009)
“Delivering superior value to customers and in doing so earning an above
average return for the company and its stakeholders ” (McGee et al, 2005)
“a position of enduring superiority over competitors ”
“=product excellence x process excellence” (Christopher, 2005)
Perhaps a business perspective is more urgent in its message; “you have an
economic castle in a capitalist world, where everyone is tr ying to take your castle”, to
which it’s sustainability is paramount to create a “durable advantage” , thus “Build a
moat” and keep it going. (Warren Buffet)
This report considers the condition of “out of the box” text book competitive
strategy and identifies its followers and indeed some of its hecklers of the average
performance it bestows.
W e will then examine and explore the case of UPS and discover which
traditional generic strategy is suitable.
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2. Competitive Advantage
The work of M. Porter is the market leader in this subject with particular
reference to the three most widely read books on co mpetitive analysis in the 1980s;
Michael Porter’s Competitive Strategy (Free Press, 1980), Competitive Advantage
(Free Press, 1985), and Competitive Advantage of Nations (Free Press, 1989). In
the generic strategy framework, there are two common choices, to become a cost
leader, achieved through economies of scale or the opposite and differentiate its
products. By applying these strengths in either a broad or a narrow scope, three
generic...