*Sleeping with the enemy*
Woke up at 3.15am; mosquitoes. Thank you mosquitoes, how did you know I have an MBA exam to study for?
A continuation of my ‘MBA study group online discussion open to all for comments’…
For question: generic strategy, fit and competitive advantage, we have to briefly define each term and then choose facts from the case study which illustrates our ‘understanding’ of t…he theory.
(I’m thinking; no amount of theory prepares you for the practical, anyhow, to be prepared is better than not being prepared).
I would define competitive advantage by quoting Barney 1991. Barney summarises that a firm has competitive advantage when it creates value by doing something that no other competitor is doing.
For Esquel, the following are examples of the companies competitive advantage (referring to case study): 1) focus on quality (the generic strategy) 2) time-to-market (which is time taken for product development, from idea to the finished product) 3) supply-chain management (vertical integration) 4) leading ethical business practices and CSR
I also think that Marjorie Yang’s (the chairman/woman) background from a family business of garment industry over 3 generations has an impact on Esquel’s competitive advantage.
Then we have the tests for sustainable competitive advantage (V.R.I.N.) by Barney 1991 (again)
A resource must pass the four in order to provide “sustainable competitive advantage”:
Valuable: in the industry context of opportunities and threats Rare: scarce relative to competitors non-Imitable/hard or costly to copy: non-substitutable
(I’m thinking this was already discussed during the ‘exam briefing session’ and I wonder if the same question will come out again. Never mind, briefly cover and then move on).
(I am also thinking, Esquels focus on CSR is a non-imitable/hard and costly to copy because it has allowed a unique relationship to develop between Esquel and the government of Gaoming = please friends correct me if I’m wrong here)
Esquel owned garment factories in Malaysia, Hong Kong, Mauritius, Singapore, Jamaica and set up joint ventures in Taiwan, Sri Lanka and the Philippines. Government legislation set up a quota system that limited exports to the US market. Esquel overcame this by investing in countries without such quotas. (I like this; pure genius to overcome stupid rules, I mean questionable rules)
If I remember correctly the lecturer said to choose 3-4 items and then analyse each in detail. Good. Time to move on to next topic.See More