Page 280 - E2 Integrated Workbook STUDENT 2018

Subject E2: Project and Relationship Management

CHAPTER 3 – COMPETITIVE ADVANTAGE

3.1 CDE is most likely to adopt focused differentiation.

DEF is most likely to adopt monopoly pricing.

EFG is most likely to adopt low price/low value.

FGH is most likely to adopt differentiation.

Bowman’s strategy clock offers eight strategic positions depending on the
combination of price and perceived value to the customer. The eight positions
are:

 Low price/low value

 Low price

 Hybrid

 Differentiation

 Focused differentiation

 Risky, high margin

 Monopoly pricing

 Loss of market share

3.2 The correct statements are A, D and E

With the resource-based the starting point is the mission of the business. This is
incorrect; the starting point for the resource-based view is the corporate
appraisal.

Prahalad and Hamal identified four criteria for unique resources which are
valuable, rare, imperfectly imitable and non-substitutable. This is incorrect.
Prahalad and Hamal coined the terms core competence, Barney identified the
four criteria for unique resources.

The essence of the positioning view is that organisations should focus on
developing their core competencies. This is incorrect as this is the essence of
the resource-based view.

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