Developing Strategies for Competitive Advantage

Developing Strategies for Competitive Advantage

Tamio Shimizu (University of Sao Paulo, Brazil)
DOI: 10.4018/978-1-59904-654-9.ch003
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Abstract

As in any game, the success of competitive strategies depends on knowing the rules as well as the other players. Nevertheless, in the real competitive environment, the rules are not always clear and can change very quickly, demanding quick responses and making it increasingly difficult to map the moves of the main players. Strong monitoring channels must be maintained to follow changes in the competitive environment and to discern new trends. Changes in the environment can result from emerging technologies or changes in society’s behavior, and thus in clients´ demands. They can also be the result of competitors´ moves in the market. Thus developing a good competitive strategy depends on mapping the environment and constantly monitoring it to be able to capitalize quickly on opportunities or neutralize threats. The focus of this chapter is on mapping the environment. It will show the main aspects of the model for industry analysis and explain the process of forming strategic groups and pressure maps.

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