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AC6062: Porter 1980; 1985 sees competitive strategy as concerned with “creating and maintaining a competitive advantage in each and every area of business: Strategic Management Accounting Coursework, UOEL, UK
| University | University of East London (UOEL) |
| Subject | AC6062: Strategic Management Accounting |
Porter 1980; 1985 sees competitive strategy as concerned with “creating and maintaining a competitive advantage in each and every area of business”. Furthermore, Ohmae (1982) states: “Business strategy is all about competitive advantage. Without competitors there would be no need for strategy, for the sole purpose of strategic management accounting is to enable the company to gain a sustainable edge over its competitors”. The introduction of improved quality products has been a strategy applied by many organizations to obtain a competitive advantage. Some organizations believe it is necessary to improve levels of product quality if competitive advantage is to be preserved or strengthened.
For example, in the UK’s supermarket industry, there is keen competition amongst the players in the industry. Kantar (2020) observes that competition in the UK supermarket industry is extremely intense. This makes the existing companies less attractive and profitable. Tesco is the market leader, however, competition between Asda and Sainsbury’s for the second position has recently been fierce.
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