- A product or service that an organization's customers place a greater value on than similar offerings from a competitor.
- Unfortunately, CA istemporary because competitiors keep duplicate the strategy.
- Then, the company should start the new competitive advantage.
Five Forces Model by Michael Porter - useful tools to aid organizations in challenging decision whether to join a new industry or industry segment.
- Buyer power
- Supplier power-Supplier power is the converse of buyer power.
- Threat of Substitute products & Services
- Threats of new entrants
- Rivalry among existence competitors.
The Three Generic Strategies -
- Cost leadership - becoming a low cost producer in the industry allows the company to lower prices to customers. Competitors with higher cost cannot afford to compete with low cost leader on price.
- Differentiation - Create competitive advantage by distinguish their products on one or more features important to their customers. Unique features or benefits may justify price differences and/or stimulate demand. Ex: i-care by Proton
- Focused Strategy - Target to a niche market, concentrates on either cost leadership or differentiation.