Chapter 2: Identifying Competitive Advantages

As we know running a company today is similar to leading an army.

What I mean here, the top manager will give the right direction and completing their goals and objectives.

IDENTIFYING COMPETITIVE ADVANTAGES.

Competitive advantages is a feature of a product or service on which customers place a greater value than they do on similar offerings from a competitors.

UNFORTUNATELY, competitive advantages are typically temporary, because competitors often quickly seek ways to duplicate them.

First-move advantages occurs when a company can singnificantly increase its market share by being first with a new competitive advantages

Competitive intelligence is the process og gathering information about the competitive environment, including competitors plans, activities, and products to improve a company ability to succeed.

THE FIVE FORCE MODEL- EVALUATING INDUSTRY ATTRACTIVENESS.

BUYER POWER

Buyer power is the ability of buyers to affect the price they must pay for an item.

Switching Costs, costs that make customers reluctant to switch to another product or service

Loyalty programs which rewards customers based on their spending .

SUPPLIER POWER

Supply chain consists of all parties involved, directly or indirectly, in obtaining raw materials or a product.

Power is the supplliers ability to influence the prices they charge for supplies (including, materials, labour and services)

THREAT OF SUBSTITUTE PRODUCTS OR SERVICES

Threat of substitute products or services is high when there are many alternatives to a product or services and law when there are few alternatives from which to choose.

THREAT OF NEW ENTRANTS

Threat of new entrants it is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.

RIVARLY AMONG EXISTING COMPETITORS

This is high when competitors is fierce in a market and low when competitors are more complacent.




THE THREE GENERIC STRATEGIES- CHOOSING A BUSINESS FOCUS.