Reading 41: Competitive Strategy

First, I completed the end of chapter problems for Reading 40. I couldn’t really understand # 19. I’ll come back to it during my second revision.

Second, I started with the Competitive Strategy reading. It’s quite easy and talks about industry attractiveness and the competitive advantage, how the industry structure plays a major role in the industry profitability. Then we go into the Generic Strategies for Competitive Advantage:

1. Cost
2. Differentiation
3. Focus (Both Cost and Differentiation)

I’m done with the Cost Leadership part- Low cost producer bcoz of cheap raw materials and tech. advancements. Price should be comparable to the industry average or lower. Products should be similar or if they are different, they should be preferred by buyers.

I need to do Differentiation and the Focus strategies tomorrow. And then start with Industry Analysis (Reading 42), if possible- it looks really long and boring. I can’t wait to get done with this Study Session. I really hate it.