IDENTIFYING COMPETITIVE ADVANTAGE....




What is Identifying Competitive Advantage???

• to survive and thrive an organization must create a competitive advantage
• competitive advantage - a product or service that an organization's customers place a greater value on than similar offerings from a competitor.

• first mover advantage - occurs when an organization can significantly impact its market share by being first to market with competitive advantage. 

Competitive advantage is a product or service that an organization.

THE FIVE FORCES MODEL EVALUATING BUSINESS SEGMENTS

Porter's five force model
determines the relatives attractiveness of an industry

• Buyer power - assessed analyzing the ability of buyers to directly impact the price they are willing to pay for an item.
• ways to reduce buyer power include:
• switching cost - cost that can make customers reluctant to switch to another product or service.
• loyalty program - rewards customers based on the  amount of business they do with a particular organization.

• supplier power - assessed by the suppliers' ability to directly impact the price they are charging for supplies.
• supply chain - consists of all parties involved in the procurement of a product or raw material.

• threat of new entrants - high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.
• entry barrier - a product or service feature that customers have come to expect from organization in a particular industry and must be offered by an entering organization to compete and survive.

• threat of substitute product or service - high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

RIVALRY AMONG EXISTING COMPETITORS

• Rivalry among existing competitors - high when competition is fierce in a market and low when competition is more complacent.