helen mba _2 - Nelson Mandela Metropolitan University

and Strebel and Porter has, however, drawn attention to the reality that competitiveadvantage has only a few basic roots. These roots are regarded as inherent ingeneric competitive strategies. Generic competitive strategies are based on choicesthat have to be made along three dimensions of competitive strategy. The threedimensions are high perceived value, low delivered cost, and scope.• High perceived cost is the extent to which the company will compete on therelative differentiation of its products or services. Their uniqueness and valueddifferentiation form competitive offerings.• Low delivered cost is the extent to which the company will compete on therelative cost-in-use of products or services. Such firms must be driven by adesire to minimise cost at every stage of product or service delivery.• Scope is the extent to which the company chooses to define the scope of itsbusiness. Organisations may choose to invest in a strategy that involvesbroad industry scope, or to focus on a segment of the market.2.7 THE BASE OF COMPETITIVE ADVANTAGE: THE ‘STRATEGY CLOCK’After the organisation has determined the forces at work in the business environment,the internal capabilities of the organisation and the expectations and influences ofstakeholders, it is important to develop a strategy. The influences mentioned aboveare not necessarily compatible, but are likely to be conflicting. These potentialconflicts are unavoidable, and successful organisations reconcile them better thanunsuccessful ones.2.7.1 Competitive strategy66