Google’s Executive Chairman and former CEO Eric Schmidt provides us with some insights
(reported in Manyika 2008):
EES&OR483 Strategy and Marketing Primer (version 3.0)
This set of "crib notes" is a review of marketing and strategy tools and concepts that you may find useful for your project in EES&OR 483. The intention is not to give you more work or reading material, but rather to provide you with an aid and reference in formulating and analyzing your problem.
All of the concepts covered in lecture and the assigned readings are reviewed here. You might find the summaries a helpful reminder of what the concepts are and how they can be valuable in your project. Also, some topics found here are not covered in lectures or assigned readings (specifically, Sections 2.2, 2.4, and 5.1-5.5). These are additional topics on conceptual (i.e. MBA) marketing and strategy. Since lectures in this project course are limited and emphasize quantitative models for strategy, we do not have the time to cover all the topics in class. However, if you are not already familiar with basic marketing and strategy frameworks, we want to offer you more exposure to them. You may find this broader exposure helpful for several reasons:
• understand the context of what is covered in lecture
• properly frame your project
• find leads to other concepts that may be particularly relevant to your project
How is competitive advantage created?
At the most fundamental level, firms create competitive advantage by perceiving or discovering new and better ways to compete in an industry and bringing them to market, which is ultimately an act of innovation. Innovations shift competitive advantage when rivals either fail to perceive the new way of competing or are unwilling or unable to respond. There can be significant advantages to early movers responding to innovations,
References: • Porter, Michael, Competitive Advantage, The Free Press, NY, 1985. • Porter, Michael, The Competitive Advantage of Nations, The Free Press, NY, 1990. • Porter, Michael, "What is strategy?" Harvard Business Review v74, n6 (Nov-Dec, 1996):61 (18