Monday 6 July 2015


     






                          CHAPTER 2: IDENTIFYING COMPETITIVE ADVANTAGE


learning outcome:

  • knows how the competitive advantages are typically temporary
  • can list and explain the Porter's Five Forces Model
  • compare Porter's three generic strategies 
  • can describe relationship between business processes and value chain
what is competetive advantage? 
  • its an environmental scanning throughout external nor internal
  • the concept of what makes your products / services are different from others 
  • PESTEL
competitive advantage: 
  • porter's five forces model
  • porters 3 generise strategies
  • relationship between business process and value chain 

the five forces model:
  1. BUYER POWER
  • in the process to produce low buyer power ( at the same time create competitive advantage ), an organization must make it more attractive to buy it from the company, not from the competitors
  • one of the best way is to practices of it
     2.  SUPPLIER POWER
  • supply power us the converse of buyer power
  • suppliers ---} organization ( organization wants supplier power low here)
  • organization ---} customers (organization wants supplier power high here)
  • low : when buyers choices are many
  • high : when buyers have few choices of whom to buy
     3.  THREATS OF SUBSTITUE PRODUCTS & SERVICES 
  • to understand, when customers can use different products to fulfill the same need, the threat of substitue exist
  • switching cost which makes customer changes from using the certain product to using another brand of product.
  • high: when are many alternatives of product
  • low: when only few alternatives to choose 
     4.  THREARS OF NEW ENTRANTS 
  • many threats comes from unexist company or have a presence in a given industry or market
  • it makes the top management to follow the trends, especially in technology that might give rise to news competitors.
  • high: when its easy to enter a market
  • low: when there are barriers to enter market
      5.  RIVALRY AMONG EXISTANCE COMPETITORS
  • existing competitors are not much of the threats because normally every firm have its own niche(specialty)
  • however, in changing of management, ownership, or rules can give rise of the threats for a long time survival frim existing firm
  • high: when competition is fierce in market
  • low: when co,mpetition is more complacent   


the porter's 3 generis strategies

  • cost leadership
  • differentiation
  • focused strategies

relationship between business and value chain

  • add value to its products and services that support a profit margin for the firm































No comments:

Post a Comment