CHAPTER 2- IDENTIFYING COMPETITIVE
ADVANTAGE
·
COMPETITIVE ADVANTAGE IS A PRODUCT OR SERVICE THAT AN
ORGANIZATION’S CUSTOMER PLACE A GREATER VALUE ON THAN SIMILAR OFFERINGS FROM A
COMPETITOR.
1.BUYER POWER
HIGH- when buyer powers have many choices of
whom to buy.
LOW- choices are few.
2.SUPPLIER POWER
HIGH- when buyers have few choices of whom
to buy from.
LOW- choices are many.
3. THREAT OF SUBSTITUTE PRODUCT OR SERVICES.
HIGH- there are many alternatives to a
product or services.
LOW- few alternatives from which to choose.
4. THREAT OF NEW ENTRANTS.
HIGH- when it is easy for new competitors
to enter a market.
LOW- when there are significant entry barriers
to entering a market.
5.RIVALRY AMONG EXISTENCE COMPETITORS
HIGH- when a competition is fierce in a
market.
LOW- there are significant
entry barriers to entering a market.
1.
COST LEADERSHIP
·
Becoming a low cost producer in the industry allows the
company to lower prices to customers.
·
Competitors with higher costs cant afford to compete with the
low cost leader in price.
2.
DIFFERENTATION
·
Create a competitive advantage by distinguishing their
products on one or more features important to their customer.
·
Unique features or benefits may justify price differences
and/or stimulate demand.
3.
FOCUSED STRATEGIES
·
Target to a niche market.
·
Concentrates on either cost leadership or differentiation.
RELATIONSHIP BETWEEN BUSINESS PROCESS
AND VALUE CHAIN
THE VALUE CHAINS- TARGETING BUSINESS PROCESSES.
·
Supply chain – a chain or series of processes that adds value
to product and services for customer.
·
Add value to its products and services that support a profit
margin for the firm.
THANK YOU :)
