Literature review on competitive advantage Essay

Literature retrospect on competitive improvement - Essay ExampleThe concept of competitive profit has evolved over the historic few decades and has now extend an integral part of strategic management of any organization. Much look for has been conducted on the attainment of competitive advantage and effective ways to sustain it. This literature review aims to develop the concept of competitive advantage in the light of different authors, along with their proposals of effective strategies to sustain it. a couple of(prenominal) examples encounter been chosen from the available literature to highlight the practical implementation of the concepts of competitive advantage. 2. Literature retread The concept of competitive advantage was introduced in the study of strategic management by Ansoff (1965). His ideas and propositions are know to form the basis of vital aspects of the development of growth strategy of any organization. Lowy and Hood (2004) quoted Ansoff (1965) and stat ed that his drawn-out experience and research in the field of diversification planning, highlighted relevant aspects and issues that should be considered for an effective growth strategy. Hindle (2008) in any case discussed the contributions of Ansoff and stated that some of the valuable contributions of Ansoffs work in the field of strategic management are related to the attainment of competitive advantage and eye competencies. Priemand and Butler (2001) pointed out that Ansoffs work seemed to sieve on the relevance of industry-based factors (threats and opportunities) more than the resource-based ones (weaknesses and strengths). Dix and Mathews (2002) provided a basis of strategy formulation and explained the attainment of competitive advantage he stated that the development of strategic decisions involve the analysis of the core competencies and resources of the company. Prahalad and Hamel (2003) also considered the identification of core competencies as an important aspect o f competitive advantage. The core competencies, that are unique and distinguishing from the competitors, can serve to become the competitive advantage if they are availed in the presence of good opportunities in the market. The concept of competitive advantage was further researched upon by Porter (1998). Porter explained the formulation of a competitive strategy as the broad(a) plan of how businesses should compete in the market (in the presence of various environmental factors) to meet their goals. It also involves the policies check to which goals and objectives of the organization can be met. Porter also stated that competitive advantage can be explained as the combination of having low expenses, differentiation value for the company and a strategy that enables the company to counselling on their main objectives. Porter (1998) accumulated all the aspects that might be related to the attainment of competitive advantage onto a single page. He described it as the Wheel of Compet itive Strategy. The fundamental bases of the strategy are the basic goals that are aspired to be achieved by the company and the flock which is set as the main direction of the company. Various aspects on the rim of the wheel, like marketing, product line, finance and control etc have to be considered to attain competitive advantage in the market, while being influenced by the main vision of the company.