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Business Economics and Competitive Advantage examines the economics of a company's business focusing primarily on its competitive advantage. A company's competitive advantage largely determines its ability to generate excess returns on capital and links the business strategy with fundamental finance and capital markets. In the end, it is a company's competitive advantage that allows it to earn excess returns for its shareholders. Without a competitive advantage, a corporation has limited economic reason to exists--its competitive advantage is its staff of life. Without it, the corporation will wither away. Creating a sustainable competitive advantage may be the single most important goal of any corporation and may be the most important single attribute on which each corporation must place its most focus. On this page we will present our thinking on the importance of competitive advantage, as well as ways to measure it and financial metrics associated with it. Click on the titles to view the reports in Acrobat The Ecosystem Edge - July 27, 2005 The Economics of Customer Businesses - December 9, 2004 Exploring Network Economics - October 11, 2004
All Strategy is Local - HBR article by Bruce Greenwald and Judd Kahn; perhaps the best analysis of competitive advantage ever published - September 2005.
Measuring the Moat - Assessing the Magnitude and Sustainability of Value Creation - December 16, 2002 Competitive Advantage Period "CAP", The Neglected Value Driver - January 14, 1997 Introducing ROIC as an Economic Measure - Paul Johnson, December 17, 1996
Perhaps one of the most important articles written on corporate strategy is the analysis done by Bruce Greenwald and Judd Kahn in HBR: All Strategy is Local.
This page was last updated on 01/27/07.
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