Beruflich Dokumente
Kultur Dokumente
Cost leadership
Competitive Porters 3
Advantage generis Differentiation
strategies
Focused
strategies
Relationship
between business
process and value
chain
What is
competitive advantage?
A product or service that an organizations
customers place a greater value than similar
offerings from a competitor.
Unfortunately, CA is temporary because
competitors keep duplicate the strategy.
Then, the company should start the new
competitive advantage.
Example? ______________________
Source: Adapted from Michael E. Porter, How Competitive Forces Shape Strategy, Harvard Business Review 57, no. 2 (March/April 1979): 137145.
Five Forces
Model
1. Buyer power
2. Supplier power
Michael Porters Five Forces Model
3. Threat of
substitute is useful tool to aid organization in
products or challenging decision whether to join
services. a new industry or industry segment.
4. Threats of new A model for industry analysis
entrants. When company understand their
5. Rivalry among
environment , they can adjust
existing
companies. strategy accordingly.
https://www.mindtools.com/pages/
article/newTMC_08.htm
High when buyers have many choices of
whom to buy.
Low when their choices are few.
To reduce buyer power (and create
competitive advantage), an organization
produce attractive product compared the
competitors.
Best practices of IT-based
Loyalty program in travel industry (e.g. rewards
on free airline tickets or hotel stays )
Bargaining Power of Customers./Buyer power
o Customers can grow large and powerful as a result of their
market share.
o Many choices of whom to buy from
o Low when comes to limited items
o E.g.: used loyalty programs (jusco card, tesco card, - being a
members to get the discount)
High when buyers have few choices of
whom to buy from.
Low when their choices are many.
Best practices of IT to create competitive
advantage.
E.g. B2B marketplace private exchange allow a
single buyer to posts it needs and then open the
bidding to any supplier who would care to bid.
Reverse auction is an auction format in which
increasingly lower bids.
Supplier power is the converse of buyer
power.
Cost leadership
Competitive Porters 3
Advantage generic Differentiation
strategies
Focused
strategies
Relationship
between business
process and value
chain
Which do you prefer when you
fly: a cheap, no-frills airline, or a
more expensive operator with
fantastic service levels and
maximum comfort? And would
you ever consider a small
company with just a few routes?
1. Cost Leadership
2. Differentiation
Broad Cost
Market Differentiation
Leadership
Competitive
Scope
Narrow
Market Focused Strategy
Cost leadership strategy Differentiation strategy
H YUNDAI/PROTON AUDI
Broad BCL strategy BD
market low cost DIFF. $
KIA/VIVA HUMMER
FCL strategy FD
Focused
market low cost
Rivalry among
existing
competitors
Cost leadership
Porters 3
Competitive
generis
Advantage Differentiation
strategies
Focused
strategies
Relationship
between business
process and value
chain
Supply Chain - a chain or series of
processes that adds value to product &
service for customer.
Marketing
Inbound Outbound Customer
Operations and
Logistics Logistics Service
Sales
THANK
YOU