Chapter 2 Review: 

Firm Performance and Competitive Advantage

Strategy is defined as a plan of action created to achieve an overall goal.  In business this goal is to outperform other companies in the market.  Basically the goal of strategy of any business is to achieve competitive advantage.  If that is achieved then the firm is more likely to succeed in the long run.

To maintain a competitive advantage the firm must achieve economic advantage to ensure that the perceived benefits that a customer will gain is worth the cost of the goods sold.  There are many companies that have proven they are master's of strategy and gaining competitive advantages including: Amazon, Apple and Yeti most recently.

Each of these firms have proven to customers that their products are worth the cost. Yeti most recently has been the front runner in coolers for travel, sporting events, and even hunters and fishermen.  There are many other competitors in the field right now that have much cheaper products that are virtually the same as Yeti, but Yeti still has the market advantage currently.

Time will tell if Yeti, Amazon and Apple can keep up their advantage given all of the competitors in each of these fields.