Firms such as Schering-Plough, which makes the head, long-term financial performance in the industry say, to enjoy a competitive advantage over their rivals. This note addresses the logic of how firms create competitive advantage. He emphasizes two themes: first, to create an advantage, a firm must adjust ourselves to do something unique and valuable. Companies must ensure that if disappear, someone in their network of suppliers, customers, and complementors will miss him, and no one can replace it perfectly. In the first section, we use the concept of "value added" to make this point more precisely. Second, the competitive advantage usually comes from the full range of the company - from manufacturing to finance, from marketing to logistics - acting in harmony. The essence of creating advantage is an integrated set of solutions that differentiates the company from competitors. The second section shows how managers can analyze the full range of activities in order to understand the sources of added value. "Hide
by Pankaj Ghemawat, Jan W. Rivkin, 21 pages. Publication Date: January 25, 1998. Prod. #: 798062-PDF-ENG
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