Strategic Reflection: Analyzing Competitive Advantage Strategies

1 Reflection and Discussion Forum Week 1 Kanika Garg University of the Cumberlands StrThnk, DecMk & Inn Dr. Michael Knight December 20, 2022

2 Reflection Strategy is the process or set of activities used to identify and pursue goals that will result in a company’s competitive advantage. A company with a well-developed strategy can leverage its resources more efficiently, ensuring it remains at or near the top of its industry. Without a solid strategy, companies may find themselves struggling to remain competitive while their rivals soar ahead. Numerous factors go into developing a successful strategy for any business. Some key considerations include market analysis, competitor analysis, and elimination among others. The role of strategy in a firm’s quest for competitive advantage can be summarized as follows strategies must identify and prioritize goals. Second, they must develop plans to achieve these goals (Rothaermel, 2020). Third, they must monitor progress periodically and adjust their plans accordingly. Fourth, they should constantly seek new opportunities to improve performance relative to the competition. It is important for firms to be aware of their current position and where they believe they fit within the overall marketplace so that they can tailor their strategies accordingly. Companies also need to consider how changing conditions might affect their ability to compete in the future - something which cannot be fully predicted but must be managed as best possible through ongoing monitoring and assessment (Rothaermel, 2020). The stakeholder impact analysis is a widely used tool to identify and assess the potential impacts of proposed actions on different types of stakeholders. The SIA process begins by identifying all potentially impacted parties, both internal and external to an organization. Once these parties are identified, their respective needs and wants must be determined for the SIA to produce realistic results. There are many benefits associated with conducting a successful SIA. First and foremost, the process can help organizations ensure that proposed actions will benefit everyone involved, not just those who wield influence within the organization (Rothaermel, 2020). Additionally, effective SIA processes can prevent

3 unwanted outcomes from occurring due to insufficient consideration of stakeholder interests. Finally, proper implementation of an SIA can boost trust between management and employees by creating clarity about what’s expected from each group within an organizational structure (Rothaermel, 2020). The AFI Strategy Framework is a tool used by managers to plan and monitor the implementation of their company's strategy. The framework helps identify critical tasks, performance goals, and targets necessary for achieving organizational objectives. Additionally, the framework can help ensure that all aspects of an organization are working cooperatively in support of the overall corporate strategy. Strategy Framework can provide organizational and individual strategists with a framework for analyzing complex problems and devising innovative solutions (Rothaermel, 2020). AFIS provides the building blocks necessary for formulating problem-solving plans that are consistent with stakeholder expectations while minimizing risk. Formulation, Implementation Strategy Framework is a tool that helps organizations analyze their current strategy and develop an implementation plan to achieve their desired goals. This framework takes into account key elements such as the organization's mission, vision, goals, strategies, and indicators of success. It also looks at factors such as resources available and constraints faced by the company to provide a strategic roadmap for successful implementation. This framework has been proven to help guide organizational planning and execution across different industries (Rothaermel, 2020). Discussion Walmart and Nordstrom are both in the retail industry, which means they sell products to consumers. However, Walmart sells a wider range of products than Nordstrom does. A key distinction between the two is that small businesses typically have a lower overhead cost as they are typically run by one person or very few people, while larger firms tend to have higher overhead costs as there are more employees and specialized equipment and facilities

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4 involved in their operations. Additionally, smaller business usually generates less revenue in comparison to larger ones due to the high fixed costs associated with running such entities (Olson et al., 2021). When looking at these two firms, it is clear there are many different differences between them. One of the main differences between these two companies is that Walmart focuses on affordable goods while target focuses on high-quality items. Another difference between the two companies is Walmart’s limited assortment and targeting of a wider array of options. Further distinctions can be drawn based on how each company approaches trade-offs in its business model (Olson et al., 2021).

5 References Olson, E. M., Olson, K. M., Czaplewski, A. J., & Key, T. M. (2021). Business strategy and the management of digital marketing. Bus. Horiz. , 64 (2), 285–293. Rothaermel, F. (2020). ISE Strategic Management: Concepts (5th ed.). McGraw-Hill Education.

Reflection and Discussion Forum Week 1 (1)

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