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1. It has been said that the rules for success are written outside the organization but competitive advantage must be found within the organization. Explain this statement. Support your thoughts.

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External analysis indicates what the organization should be doing, however, managers must look inside the organization for competitive advantage.

Finding strengths that are competitively relevant involves more than a listing of strengths. Each strength must be evaluated to ensure it is of value to stakeholders, is something rare that the organization possesses, is difficult for competitors to copy, and can be sustained.

Leaders must evaluate the organizations weaknesses to ensure they do not constitute a competitive disadvantage.

Competitive disadvantages, without corrective action, place the organization in danger of extinction.

Competitive advantage is not an excuse for complacency; the things that made an organization great in the past may be the very things that will cause problems in the future.

Continuous innovation is necessary for long-term success.


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