Question: This week material has been about business strategy, also called generic competitive advantage because it applies to virtually all competitive (non-monopoly) industries. The basic forms
This week material has been about business strategy, also called generic competitive advantage because it applies to virtually all competitive (non-monopoly) industries. The basic forms of competitive advantage have been explained using Porter's classic dichotomy of Cost Leadership versus Differentiation. These are two different routes to competitive advantage and superior profitability according to Michael Porter.
So the discussion question is, how is this concept of generic strategy used in the Capstone Simulation? How is it similar in Capstone to Porter's original conception of cost leadership and differentiation? How is it different? Basically, I'm asking the class, where does Porter's explanation of generic competitive advantage 'end', and where does Capstone 'begin'? Think about it and apply the theory (Porter's conceptualization) to the competitive environment we have in the simulation.
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