Business Strategies for Sustainable Growth (Application of Competitive Advantage Tool of Porter)
Journal Title: JOURNAL OF COMMERCE AND TRADE - Year 2006, Vol 1, Issue 2
Abstract
In this era of globalisatin, liberalisation an privatisation formulating stategies for growth has been the main focus area of top management of the firms; not only growth but sustainable of Porter propounded, “Competitive Advantage grows out of the value of a firm is able to create for its buyers that exceeds the firm’s cost of creating it. There are two basic types of competitive advantage - cost leadership and differentiation”. A firm may choose to emphasize one of three ‘value disciplines’-- Product leadership, Operational excellence, and Customer intimacy. an essential lesson for the corporates is that competencies are the roots of competitive advantage, and therefore business should be organised as a portfolio of competencies rather than a portfolio of business.
Authors and Affiliations
Er. S. Rajaram, Ashok Kumar, Vivek Gupta
Keywords
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