Strategic Management Wk3 Assignment Example | Topics and Well Written Essays - 500 words

Strategic Management Wk3 - Assignment ExampleThe methods and strategies aim at making a line of merchandise dominate its market space. Competitive advantage management is, therefore, an integral part of a business plan. This paper explores comfort creation and competitive advantage. In particular, the paper discusses key steps in creating value and importance of competitive advantage. In addition, the paper highlights how a multinational company maintains competitive advantage everyplace its competitor.According to Bamford & West (2009), creating value and competitive advantage in a business calls for, as the low gear step, an understanding of competitive advantage type an organization wishes to employ in. Based on Michael Porters analysis, competitive advantage, as a firms strength, is categorized as either differentiation or cost advantage (Bamford & West, 2009). Cost advantage occurs when a company delivers similar products like its competitors but at low costs, while differen tiation entails delivering high quality products than those of a rivaling business. The second step involves assessing available resources in a business. Available resources determine whether a business applies one type of competitive advantage or both. Third step involves evaluating strengths or abilities of a business (Bamford & West, 2009). Strengths of a company are vital in planning for steady progress of an organization. From abilities and resources, a business realizes its distinctive competencies. Identified skills facilitate efficiency, innovativeness, and quality customer-business relation. The closing step involves deciding on when and how to apply formulated strategies.Wal-Mart is an example of a multinational company that has successfully applied the concept of value creation and competitive advantage to win its competitors. Wal-Mart Stores, Inc. runs numerous chains of warehouse stores and large discount retail shops worldwide. According to Fishman (2006), the company is considered as among