Answer to Question #207651 in Management for Bob

Question

When measuring competitive advantage and firm strategy, It is important to use both qualitative and quantitative frameworks. Briefly explain why?

Answer 1

When attempting to analyze the firm's strategy and competitive advantage, qualitative data focuses on the quality of information.

It is dependable and quantifiable data.

There must be reliable information.

For instance, suppose someone conducted an extensive study with plenty of excellent, trustworthy information on how strong a company's competitive advantage is and how effectively the firm's plan is functioning.

Quantitative data is the amount of information gathered.

When attempting to assess a firm's strategy and competitive advantage, the best circumstance would be to have a sufficient number of quality information.

You don't want to get too little information, but you also don't want to gather too much negative information.

You don't want to focus just on one of them, because you could discover that the other is underperforming.

To successfully analyze a company's strategy, you need to include both over multiple time periods.