Competitive Advantage

1
Competitive Advantage
2
Steps to Making a Decision

• Identify the Problem/Decision
• Identify the Criteria
• Identify the Alternatives
• Evaluate the Alternatives
• Select an Alternative
• Implement

3
Making a Decision

• What are the proper criteria?
• Cost?
• Product features?
• Whatever will create competitive advantage for
  your firm/organization, in general

4
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
5
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
6
Product Life Cycle
7
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
8
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
9
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
10
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
11
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
12
Porters Five Forces
Threat of New Entrants
Industry Competition
Buyer Power
Supplier Power
Threat of Substitutes
13
Generic Strategies for Earning an Above Average
Profit
14
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

15
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• The lowest-cost producer of a product or service

16
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• The lowest-cost producer of a product or service

• Differentiation

17
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• The lowest-cost producer of a product or service

• Differentiation
• Producer of a product or service that is
  perceived as unique by the customer

18
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

19
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• Retail

20
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• Retail
• Fast food

21
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• Retail
• Fast food
• Airlines

22
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• Retail
• Fast food
• Airlines
• Education

23
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• Retail
• Fast food
• Airlines
• Education
• Automobiles

24
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• Retail
• Fast food
• Airlines
• Education
• Automobiles
• Shoes

25
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation
• Retail

26
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation
• Retail
• Fast food

27
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation
• Retail
• Fast food
• Airlines

28
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation
• Retail
• Fast food
• Airlines
• Education

29
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation
• Retail
• Fast food
• Airlines
• Education
• Automobiles

30
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation
• Retail
• Fast food
• Airlines
• Education
• Automobiles
• Shoes

31
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation

32
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• The lowest-cost producer of a product or service

• Differentiation
• Producer of a product or service that is
  perceived as unique by the customer

33
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• The lowest-cost producer of a product or service

• Differentiation
• Producer of a product or service that is
  perceived as unique by the customer

Focus
34
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader
• The lowest-cost producer of a product or service

• Differentiation
• Producer of a product or service that is
  perceived as unique by the customer

Focus
Focus
35
Generic Strategies for Earning an Above Average
Profit

• Low-Cost Leader

• Differentiation

Parity
36
The Value Chain
37
The Value Chain
Inbound Logistics
38
The Value Chain
Inbound Logistics
Operations
39
The Value Chain
Inbound Logistics
Outbound Logistics
Operations
40
The Value Chain
Inbound Logistics
Outbound Logistics
Operations
Marketing Sales
41
The Value Chain
Inbound Logistics
Outbound Logistics
Operations
Marketing Sales
Service
42
The Value Chain
Firm Infrastructure
Inbound Logistics
Outbound Logistics
Operations
Marketing Sales
Service
43
The Value Chain
Firm Infrastructure
Human Resource Management
Inbound Logistics
Outbound Logistics
Operations
Marketing Sales
Service
44
The Value Chain
Firm Infrastructure
Human Resource Management
Technology Development
Inbound Logistics
Outbound Logistics
Operations
Marketing Sales
Service
45
The Value Chain
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Inbound Logistics
Outbound Logistics
Operations
Marketing Sales
Service
46
The Value Chain
47
The Value Chain
48
SWOT Analysis

• Strengths
• Opportunities

• Weaknesses
• Threats