Using the Analytic Network Process in Business Strategy Selection: a Case Study

Grounded in the resource based viewed (RBV) of the firm to the competitive advantage, the current study attempts to identify specific resources and capabilities of an Iranian dairy products firm and to develop an evaluation framework of business strategy in a dairy production firm with its unique conditions using analytic network process (ANP). Using Delphi method, the resources and capabilities of this factory were identified as follows; speed of distribution channels, brand loyalty, skilled human resources, customer linking capabilities, and diversified& quality products. Then by employing the ANP method a conceptual model for pursuing sustainable competitive advantage is developed. The result revealed that differentiation strategy is the best strategy for the firm to pursue competitive advantage. Also customers linking capability, brand loyalty and skilled human resources criteria have the most effects upon gaining competitive advantage of the firm, with the priority weights of 0.273, 0.257, and 0.197 respectively, followed by Speed of distribution channels and diversified & quality products with the weights of 0.1 77 and 0.151