INFORMS Open Forum

  • 1.  How can companies maintain a Competitive Advantage

    Posted 01-26-2025 13:26
    Edited by Jayant Singh 01-26-2025 13:33

    Hello Colleagues,

    It is inevitable that a a single day goes by when we don't hear about adoption of AI by different firms. For sure technological innovation and adoption is an important ingredient to a firm's success in this economy. But are  technological breakthroughs enough?


    Recently, I came across an excellent masterpiece by Michael E. Porter addressing the issue of Competitive strategy. Nowadays, in their scramble for growth and technology  adoption many firms have lost sight of how to maintain a competitive advantage in the market. This book addresses core concepts of competitive strategy and also introduces some practical approaches to the industry leaders. 

    Some of these approaches include, but are not limited to;

    • Which is a better strategy; cost leadership vs. product differentiation?
    • Are all competitors a threat? Or can some competitors help us in our pursuit of growth, and 
    • Using product substitution to excel in the market.

    Though this is a classic work, but the concepts are still highly relevant. Suggested audience; industry leaders, CEOs, as well as curious analysts.

    link



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    Jayant Singh
    Analyst
    Oak Park IL
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  • 2.  RE: How can companies maintain a Competitive Advantage

    Posted 01-31-2025 12:38
    Dear Dr. Singh,
    Dear Jayant, 
     
    Thank you very much for introducing this new discussion impulse. In fact, "How can companies maintain a competitive advantage" is a very important question and initiative, since it lies at the core of INFORMS and the entire OR-MS community, yes, the future competitiveness of our modern economies and free societies.
     
    At this point I would like to mention two current research approaches and projects, both with the aim of helping companies better recognize and use existing potentials:
     
    (i) Methods of statistical or machine learning (such as Multivariate Adaptive Regression Splines) and artificial intelligence (such as Artificial Neural Networks) are used to compare and balance data, interests and needs between job-seeking students (graduates) and companies with unfilled positions.
     
    (ii) Collaboration and coopetition between companies or divisions within companies, or even between companies and individual employees or job seekers. Modern game theory is used here.
     
    Both approaches and projects are connected to the Poznan University of Technology. If you are interested in an exchange, I can name contact persons.
     
    Many thanks to you again,
     
    and also to the entire INFORMS team, which enables and maintains this valuable discussion forum.
     
    With kind regards,
    best wishes, 
    Willi (Gerhard-Wilhelm Weber)


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    Gerhard-Wilhelm Weber
    Professor
    Poznan University of Technology
    Poznan
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  • 3.  RE: How can companies maintain a Competitive Advantage

    Posted 02-01-2025 07:05

    Instead of "competitive advantage", I prefer to have organizations set their purpose. In case of commercial organizations, it's often maximization of revenue or profit over a long time-period while clipping loss-making periods or total-loss (trough depth). Porter's methods belong to the set of the models used for strategy decisions. Strategy decisions deal with: what capabilities do we need given our purpose and constraints.

    To model strategy decisions we usually have to use a financial model connected with transformation options.



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    Rahul Saxena
    RevInsight.com
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