The document discusses strategic advantages and disadvantages that firms possess. It notes that while large firms have financial strength, they tend to be less agile than smaller firms. Additionally, no firm excels in all areas of its operations. Strategists should evaluate where a firm's capabilities exceed its competitors. Strengths in key market factors allow firms to launch new products and gain market share. The document outlines five main functional areas for organizations and lists factors related to marketing/distribution and R&D/engineering that can provide strategic advantages.

1. Strategic
Advantag
e Profile

2. • Every f irm has st rat egic advant ages and
disadvant ages.
• For example, large f irms have f inancial
st r engt h but t hey t end t o move slowly,
compared t o smaller f irms, and of t en cannot
react t o changes quickly.
• No f irm is equally st rong in all it s f unct ions.
I n ot her words, every f irm has st rengt hs as
well as weaknesses.
• The St rat egist should look t o see if t he
f irm is st r onger in t hese f act ors t han it s
compet it ors.
• When a f irm is st rong in t he market , it has
a st rat egic advant age in launching new
product s or services and increasing market
share of present product s and services.

3. S.A.P.
There are generally five functional areas in
most of t he
organizat ions.
These ar eas are:
Ø Product ion or Operat ion
Ø Finance or Account ing
Ø Market ing or Dist ribut ion
Ø Human Resource & Corporat e Planning
Ø Research & Development

4. Strategic Advantage Factors: Marketing
and Distribution
1. Competitive structure and market share: To what extent has the firm
established a strong mark share in the total market or its key sub
markets?
2. Efficient and effective market research system.
3. The product-service mix: quality of products and services.
4. Product-service line: completeness of product-service line
and product-service mix; phase of life-cycle the main products and
services are in.
5. Strong new-product and new- service leadership.
6. Patent protection (or equivalent legal protection for services).
7. Positive feelings about the firm and its products and services on the
part of the ultimate consumer.

5. Strategic Advantage Factors: R&D and Engineering
1. Basic research capabilities within the firm
2. Development capability for product.
3. Excellence in product design.
4. Excellence in process design and improvements.
5. Superior packaging developments being created.
6. Improvements in the use of old or new materials.
7. Ability to meet design goals and customer requirements.
8. Well-equipped laboratories and testing facilities.
9. Trained and experienced technicians and scientists.
10. Work environment suited to creativity and innovation.