Competitive Strategy from Coursera

“Why do some companies outperform others?” That question is particularly important to ask in industries which are fiercely competitive like the tech sector. Companies competing in these industries find it difficult to achieve competitive advantage and sustain it over the longer run. In this course, you will learn about 21st century competition, the forces driving it, and the challenges it poses for companies. Using that as the backdrop, you will learn how to analyze a company's external and internal environments and develop powerful strategies that allow companies to gain a sustainable competitive advantage even in fast-cycle markets. The course will describe companies that have successfully outperformed their competitors even in the fiercely competitive markets of the 21st century.

After completing this course, you will be able to:

- Describe what a competitive strategy is and how it is formulated.

- Analyze the macro-environmental factors and identify opportunities and threats.

- Analyze industry forces and draw conclusions about the industry’s profitability.

- Describe the concept of competitive advantage and its importance.

- Describe the circumstances under which competitive advantage is sustainable.

- Analyze the value chain and understand its contribution to competitive advantage.

- Explain how companies compete on price using a cost leadership strategy.

- Describe how companies compete on their unique features using a differentiation strategy.

- Explain how companies can offer both low prices and unique features simultaneously.

- Describe how to choose a value-creating competitive strategy.

Software Requirements: None

What's inside

Syllabus

Module 1: What is Competitive Strategy?

Welcome to Competitive Strategy. In this course, we will cover the topics of: What is Competitive Strategy?, Competitive Advantage, and Choosing a Competitive Strategy. The 21st century competitive landscape is characterized by rapid technological change, increasing globalization, and intense competition. To succeed in such a challenging environment, companies need to have an effective competitive strategy to be successful over the long run. We will begin the process of developing such a strategy in this module by analyzing external factors that impact a company's performance. We will learn how to identify opportunities and threats in the macro-environment and to analyze forces that affect an industry's profitability. After completing this module, you will have a clear understanding of what competitive strategy is and how to analyze the external environment.

Module 2: Competitive Advantage

In this module, you will learn what competitive advantage is and how companies can generate it with a good competitive strategy. Competitive advantage is the firm’s ability to generate greater Economic Value Created (EVC), which is the difference between the maximum price customers are willing to pay for the company’s products or services (WTP) and the firm’s cost of producing and selling the product (COST), than the competitor’s EVC. The company’s internal resources help create competitive advantage when deployed with an effective strategy to exploit opportunities in the external environment. You will learn that certain resources which are valuable, rare, inimitable, and for which the company is well organized to exploit, can lead to sustainable or longer-term competitive advantage – which in turn drives long-term profitability. Finally, you will learn how to analyze the value chain activities and understand how they help generate competitive advantage. At the end of the module, you will learn how to analyze internal resources, how companies generate sustainable competitive advantage, and understand the role of the value chain.

Module 3: Choosing a Competitive Strategy

This module describes the different competitive strategies like differentiation, cost leadership, and best-cost strategy. You will understand how companies use these approaches to create a superior EVC and enjoy a sustainable competitive advantage. Differentiation strategies generally focus on increasing the WTP while Cost Leadership strategies stress reducing COST. Best-cost strategy aims to increase WTP and reduce COST simultaneously. You will also learn how to do the SWOT analysis by comparing external opportunities and threats with internal strengths and weaknesses. You will learn how a company can develop an optimal competitive strategy by matching internal strengths with external opportunities. Using a fictitious mini case, you will learn how the external analysis in Module 1 and internal analysis in Module 2 all come together to help companies identify an optimal competitive strategy. At the end of Module 3, you will learn the various competitive strategy alternatives available to companies, how they lead to competitive advantage, and how a company could identify the optimal competitive strategy for a given situation.

Summative Course Assessment

This module contains the summative course assessment that has been designed to evaluate your understanding of the course material and assess your ability to apply the knowledge you have acquired throughout the course. Be sure to review the course material thoroughly before taking the assessment.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Focuses on developing strategies for sustained competitive advantage in the dynamic tech sector

Provides insights into the forces driving 21st century competition

Emphasizes the importance of analyzing external and internal environments for competitive strategies

Examines strategies used by successful companies for outperforming competitors in competitive markets

Instructors M. Krishna Erramilli have expertise in the topic

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Competitive Strategy with these activities:

Read 'Competitive Strategy' by Michael E. Porter

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Gain comprehensive insights into competitive strategy from a seminal work in the field.

View HBR at 100: The Most Influential and Innovative... on Amazon

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Read the book thoroughly
Summarize the key concepts

Practice using Porter's Five Forces

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Review the concept of Porter's Five Forces to strengthen your understanding of industry analysis and competitive advantage.

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Review the five forces model
Apply the model to a specific industry

Solve Industry Analysis Problems

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Sharpen your analytical skills by solving industry analysis problems and applying key frameworks.

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Review industry analysis concepts
Attempt practice problems
Check your answers and identify areas for improvement

Five other activities

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Attend a Workshop on Best Practices in Competitive Strategy

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Learn from industry experts and network with professionals to gain valuable insights and best practices in competitive strategy.

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Research and identify relevant workshops
Register and attend the workshop
Participate actively and take notes

Participate in a Discussion Forum on Competitive Advantage

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Engage with peers to exchange ideas, challenge perspectives, and deepen your understanding of competitive advantage.

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Join an online discussion forum
Contribute to discussions
Read and respond to other perspectives

Develop a Case Study Analysis

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Reinforce your understanding by analyzing a real-world case study and identifying key strategies and industry dynamics.

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Select a relevant case study
Research and analyze the industry
Identify key competitive strategies
Write a comprehensive analysis

Develop a Competitive Strategy for a Startup

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Gain practical experience by developing a comprehensive competitive strategy for a startup company.

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Define the startup's mission and goals
Analyze the industry and competitive landscape
Identify key competitive advantages
Develop and implement a competitive strategy
Monitor and adjust the strategy as needed

Mentor Junior Students on Competitive Strategy Concepts

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Strengthen your understanding by teaching and mentoring others on key concepts in competitive strategy.

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Identify opportunities to mentor
Prepare materials and lesson plans
Meet with mentees and guide their learning

Career center

Learners who complete Competitive Strategy will develop knowledge and skills that may be useful to these careers:

Strategy Consultant

Strategy Consultants help companies develop and implement strategies that will improve their performance. They work with clients to identify their goals, analyze their current situation, and develop and implement plans to achieve their objectives. This course can help build a strong foundation in competitive strategy and is highly recommended for anyone entering the field.

See salaries and explore the career path for Strategy Consultant

Management Consultant

Management Consultants help companies improve their performance by providing advice on strategy, operations, and finance. They work with clients to identify their goals, analyze their current situation, and develop and implement plans to achieve their objectives. This course can help build a foundation of knowledge about competitive strategy and may be useful for someone entering the field.

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Competitive Intelligence Analyst

Competitive Intelligence Analysts are responsible for gathering and analyzing information about their competitors. They use this information to help their companies make better decisions about their products, services, and marketing strategies. This course can help build a foundation of knowledge about competitive strategy and may be useful for someone entering the field.

See salaries and explore the career path for Competitive Intelligence Analyst

Investment Banker

Investment Bankers help companies raise capital by issuing securities such as stocks and bonds. They also advise companies on mergers and acquisitions. This course can help build a foundation of knowledge about the financial markets and how companies can compete on price and differentiation and may be useful for someone entering the field.

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Product Manager

Product Managers are responsible for the development and marketing of products. They work with engineers, designers, and marketers to create products that meet the needs of customers. This course can help build a foundation of knowledge about competitive strategy and how companies can compete on price and differentiation and may be useful for someone entering the field.

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Business Strategy Consultant

Business Strategy Consultants are responsible for helping companies develop and implement strategies that will improve their performance. They work with clients to identify their goals, analyze their current situation, and develop and implement plans to achieve their objectives. This course can help build a foundation of knowledge about competitive strategy and may be useful for someone entering the field.

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Chief Executive Officer

Chief Executive Officers are responsible for the overall success of their organizations. They set the company's vision and strategy, and they oversee all aspects of the business, including operations, finance, and marketing. This course can help build a foundation of knowledge about competitive strategy and may be useful for someone entering the field.

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Business Analyst

The Business Analyst is someone who does something similar to a Business Intelligence Analyst, but usually focuses on an organization's goals, values and structure rather than its data. They work hand in hand with IT departments and C-suite executives to help business stay efficient, agile, and profitable. This Competitive Strategy course can help build a foundation of knowledge about how businesses operate and may be helpful to someone entering the field.

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Portfolio Manager

Portfolio Managers are responsible for managing investment portfolios for their clients. They make decisions about which investments to buy and sell, and they monitor the performance of the portfolio. This course can help build a foundation of knowledge about the financial markets and how companies can compete on price and differentiation and may be useful for someone entering the field.

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Market Research Analyst

Market Research Analysts gather and analyze data about consumer behavior and market trends. They use this information to help companies develop and market their products and services. This course can help build a foundation of knowledge about the macro-environmental factors that impact a company's performance and may be useful for someone entering the field.

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Sales Manager

Sales Managers are responsible for leading and motivating sales teams. They develop and implement sales strategies, and they monitor the performance of the team. This course can help build a foundation of knowledge about competitive strategy and how companies can compete on price and differentiation and may be useful for someone entering the field.

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Operations Manager

Operations Managers are responsible for the day-to-day operations of a company. They oversee all aspects of the business, including production, logistics, and customer service. This course can help build a foundation of knowledge about the value chain and how it contributes to competitive advantage and may be useful for someone entering the field.

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Financial Analyst

Financial Analysts are responsible for analyzing financial data and making recommendations about investments. They use their knowledge of the financial markets to help their clients make informed decisions about their portfolios. This course can help build a foundation of knowledge about the macro-environmental factors that impact a company's performance and may be useful for someone entering the field.

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Business Development Manager

A Business Development Manager is an individual who works with new and existing customers to develop and maintain relationships that translate into profit. They help understand the wants and needs of customers, and turn those into an effective strategy that helps everyone involved realize their goals. This course may be helpful for Business Development Managers, as it can help build a foundation of knowledge in how to generate sustainable competitive advantage in fiercely competitive markets.

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Business Intelligence Analyst

A Business Intelligence Analyst is someone who analyzes and interprets complex data to create actionable insights that help businesses improve their operations. This course may be useful for Business Intelligence Analysts, as it can help build a foundation of knowledge in market analysis and understanding how businesses can gain a competitive advantage in fast-paced markets.

See salaries and explore the career path for Business Intelligence Analyst