Does Cost Cutting Create Competitive Advantage?

Many Fortune 500 companies have shown us that you can make more profit with fewer sales. Sealy Mattress’ second quarter 2012 sales down 2.9%, profits up 1.5%. MillerCoors’ domestic first quarter sales to retailers was down 1.6 percent but net income rose 16.6 percent. 3M’s second quarter sales were down 1.9 percent while income rose […]

Competitive Advantage vs. The Business Model

Competitive advantage is not the same as a business model. Harvard Professor Michael Porter proposed the theory of competitive advantage in 1990. His competitive advantage theory suggests that businesses should pursue policies that create high-quality goods to sell at the highest possible prices.  Competitive advantage happens when companies acquire or develop an attribute or combination […]