Chapter 2 :: IDENTIFYING COMPETITIVE ADVANTAGES

COMPETITIVE ADVANTAGES

> WHAT  ?

Competitive advantages.

= 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 a competitive advantage

Environment scanning

= The acquisition and analysis of events and trends in the environment external to an organization.

HAVE THREE COMMON TOOLS 

1. PORTER'S FIVE FORCES MODEL
2. PORTER'S THREE GENERIC STRATEGIES
3. VALUE CHAINS

Porter's Five Force Model ( P5FM )

1. Buyer power

High >> when buyers have many choices of whom to buy from. 

Low >> when their choices are few.

      2. Supplier power

High >> when buyers have few choices of whom to buy from

Low >> when their choices are many

     3. Threat of Subtitute Products or Services

High >> when there are many alternatives to a product or service 

Low >> when there are 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 Existing Competitors

High >> when competition is fierce in a market 

Low >> when competition is more complacent