LO 5.1

The central role of competitive advantage in the study of strategic management, and the three generic strategies: overall cost leadership, differentiation, and focus.

LO 5.2

How the successful attainment of generic strategies can improve a firm's relative power vis-à-vis the five forces that determine an industry's average profitability.

LO 5.3

The pitfalls managers must avoid in striving to attain generic strategies.

LO 5.4

How firms can effectively combine the generic strategies of overall cost leadership and differentiation.

LO 5.5

What factors determine the sustainability of a firm's competitive advantage.

LO 5.6

How Internet-enabled business models are being used to improve strategic positioning.

LO 5.7

The importance of considering the industry life cycle to determine a firm's business-level strategy and its relative emphasis on functional area strategies and value-creating activities.

LO 5.8

The need for turnaround strategies that enable a firm to reposition its competitive position in an industry.