Identifying Competitive Advantage

What is Competitive advantage ?

• 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. 

1. Buyer power
2. Supplier power-Supplier power is the converse of buyer power.  
3. Threat of Substitute products & Services
4. Threats of new entrants
5. 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.