IDENTIFYING COMPETITIVE ADVANTAGES

Organization's customers place a greater value on than similar offerings from a competitor

The acquisition and analyzis of event and trens in the environment external

Organization can significantly impact its market share by being first to market with a competitive advantage

Porter's Five Forces Model

Buyer Power

High when buyer have many choices of whom to buy from and low when their choices are few

Supplier Power

High when buyer have few choices of whom to buy from and low when their choices are many

Threat of Subtitute Prodict or Services

High when there are many alternatives to a product or service and low when there are few alternatives from which to choose

Threat of New Entrants

High when it is easy for new competitors enter a market and low when there are significant entry barriers to entering a market

Rivalry among Existing Competitors

High when competition is fierce in a market and low when competition is more complacent

Porter's Three Generic Strategies

Broad Cost Leadership

Reach a large market segment

Broad Differentiation

Target a niche market

Focus Strategy

Either cost leadership or differentiation

Value Chain

Business Process

A standardized set of activities that accomplish a specific task processing a customer's order

Support Value Activities

Support the primary value activities

Primary Value Activities

Acquire raw materials and manufacture, deliver, market, sell, and provide after sales services