Week 1 Learning Objectives Q and A- chapter 1 & 2 study guide
Week 1 Learning Objectives Q and A- chapter 1 & 2
-	Under Armour
•	Explain what a company’s strategy is and why it needs to differ from competitors' strategies.
a strategy is the coordinated set of actions that its managers take in order to outperform the company’s competitors and achieve superior profitability (set itself apart from competition)
-	head firm in intended direction
-	staking out market position
-	attracting customers
-	achieving targeted outcomes
o	but all about HOW to do this
▪	How to position the company in the marketplace
▪	How to attract customers
▪	How to compete against rivals
▪	How to achieve the company’s performance targets
▪	How to capitalize on opportunities to grow the business
▪	How to respond to changing market and economic conditions
differing from competitors: - have a distinct element that draws in customers and provides a competitive edge
-	either providing products with higher perceived values or efficiently producing at lower costs (value proposition)
-	it needs to differ from competitors’ strategies because:
o	ensures lasting success that can support growth and secure the company’s future over the long term.
o	in order to gain competitive advantage and long-term marketplace success and high profitability
o	gives customers lasting reasons to prefer company over competitors as it sets company apart from rivals
o	less chance of competitors duplicating strategy despite best efforts
better chance of succeeding when it is predicated on actions and competitive moves aimed at
1.	Appealing to buyers in a way that sets it apart from its rivals and 2. Staking out a market position that is not crowded with strong competitors.
Starbuck’s strategy differs from its competitors/ how it sustains its competitive advantage: Product differentiation is the core of Starbucks' strategy to gain a sustained competitive advantage. Starbucks offers such differentiation through an excellent customer experience and quality coffee. The “Starbucks Experience” is achieved through its well-designed stores with good ambiance and well-trained staff.
•	What the concept of a sustainable competitive advantage?
a competitive advantage requires meeting customers needs either more effectively (customer value higher) or more efficiently than rivals (lower cost).
essential for realizing greater marketplace success and higher profitability over the long-term. a sustainable competitive advantage requires:
-	giving buyers lasting reasons to prefer a firm’s products/ services over rivals
-	developing expertise and long-term competitive capabilities that cannot be readily overcome
-	putting constant quest for sustainable competitive advantage at centre stage in crafting strategy.
5 most frequently used strategic approaches to achieve competitive advantage:
•	Low-cost provider strategy e.g. Walmart and Southwest airlines
•	Broad differentiation strategy e.g. Rolex and BMW
•	Focused low-cost strategy e.g. IKEA
•	Focused differentiation strategy e.g. Tesla and Goya Foods
•	Best cost provider strategy e.g. Target
The generic strategy used by Under Armour is that of differentiation. It has differentiated its brand and products from its competitors like Nike and Adidas. The brand has used them formula of innovation to make its products superior to that of the competitors. Its foundation was laid with an idea of innovation.
Even though Netflix mainly applies cost leadership as its generic strategy for competitive advantage, the business also uses differentiation in its operations	For example, Netflix
develops its competitive advantage by producing its own original content, aside from streaming content from third parties
PepsiCo- cost leadership and broad differentiation
•	Identify and explain the five most basic strategic approaches for setting a company apart from its rivals.
1.	low cost provider
o	focus of lowering cost as much as possible for consumers (while still maintaining product value)- cost based advantage over rivals
o	cost drivers
2.	focused low-cost