Question

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Discuss “cost-leadership v. differentiation” as it relates to a strategy framework for competitive advantage.

Why is commitment important in an entrepreneur? Discuss the main elements and advantages of the team approach to starting a business.

Answer 1

Cost leadership can be understood as the process where a company prices its product, operations, and services to be the best in the niche market, in order to be able to leverage the possibilities of the support from the customers to gain a competitive advantage over their competition.

Differentiation can be understood as the business' ability to create an offering in the market which allows them the ability to be able to create the necessary factors in the kind of their employees as to make the best possible use of their processes to bring about an increase in their competitive advantage.

When we consider the strategy framework, we can utilize both the strategies as being viable for businesses that compete in a given market, based on their own implementation of the different processes in order to bring about competitive advantage for them.

2. Commitment is important for an entrepreneur due to a number of reasons firstly, we can say that the entire process of implementation of their abilities as well as their ideas requires complete faith, a clear sense of direction, strategy and sufficient motivation to bring about the change.

We can say that at any point, the abilities of an entrepreneur might be tested, the workforce might need them to support as well so the fact that even the investors need to see a positive outlook, as well as effort in the work done by the entrepreneur, can allow us to understand the need for an entrepreneur to stay committed to their endeavor, throughout.

3. Utilizing a team approach brings about the use of a better sense of structure, a division of tasks, a better brainstorming process as well as the advantage when it comes to being able to perform a task better, through delegation. Thinking with a team is different than having an individual approach, simply for the fact that it allows for a balanced approach to any given situation. A team can be made up of balanced skills, thinking, and critical outlook and perspectives, all of which can be utilized in order to bring about a better structure and function for the company.