Strategic Management Task 1

2411 words 10 pages

Simulation Results

For the simulation my company name was H Company. Below you will find the results to the 8-year simulation. H Company has been highlighted in the majority of screen-shots.

Competitive Strategy

Thompson, Peteraf, Gamble, and Strickland (2012) found that competitive strategy depend on whether a company’s target market is narrow or broad, and whether a company is seeking competitive advantage through low-cost or product differentiation. These two factors reveal five generic competitive strategies. The five strategies are Overall Low-Cost Provider Strategy, Focused Low-Cost Strategy, Broad Differentiation Strategy, Focused Differentiation Strategy, and Best Cost
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Examining Stock Price for all companies you can see D Company clearly had a dominant competitive advantage. D Company Stock Price grew year-over-year for the first three years. D Company began year 11 at $53.00 per share and ended year 18 at $189.00 per share. D Company’s highest share price was year 13 at $286.00 per share. Based on the Stock Price, D Company separated themselves from the pack in year 11 and sustained their dominant competitive advantage the entire 8 years. None of D Company’s competitors came remotely close to achieving similar, successful, results.

Testing Winning Strategy

Thompson, Peteraf, Gamble, and Strickland (2012) list the fit test, the competitive advantage test, and the performance test, as three tests that can be used to determine whether a strategy is a winning strategy. The fit test, a test to determine how well the strategy fits the company’s situation, examines internal and external factors of the company to insure that the selected strategy will work. The strategy must be able to be executed, meaning the internal factors of the company must be able to support the strategy. The fit test will also examine external factors such as market share and market climate, to make sure the timing is correct for the selected strategy. Competitive advantage test will examine whether the strategy will help a company achieve sustainable competitive advantage over the competition. The


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