Table of Contents
Building on relative superiority means that a business unit can gain strategic advantage, in an otherwise stalemated situation, by exploiting areas within the KFS where it has a distinct advantage over its competition. It avoids “head-on” competition but involves playing the “same game.”
Methodology
- Identify key success factors. Understand what is required to succeed in the industry.
- Understand organizational capabilities. Understand the company’s capabilities: strengths and weaknesses beyond the KSF. Examine the execution capacity of the company in terms of: operations, organization, and IT.
- Perform benchmarking. Examine company’s positioning relative to that of its competitors. Execute a gap analysis to reflect disparities through which relative superiorities can be exploited.
- Exploit relative superiority. Apply an analytic overview of the company’s advantages, when competing via KSF. Exploit them with regard to competitive actions and reactions.
Notes
- Such a strategy should be costly and difficult for a competitor to imitate
- Assumes that the KSF will not change
Strengths
- Employs existing resources and capabilities to maximize competitive advantage
Weaknesses
- Difficult to follow if competitors compare favorably across the board