Identifying Competitive Advantages (Chapter 2)

hughh .. kelas kelas kelas kelass.. nilah kehidupan sebagai seorang pelajar. Ilmu , manusia tak dapat dipisahkan. yela menuntut ilmukan wajib bagi setiap orang. hari2 masa diluangkan dekat library je . hampir kecut jari-jemari sis dek aysik terkena udara aircond. so, entry kali ni post tutorial untuk chapter dua pulak. to students yang tercari2 tutorial chapter dua mgt300, kindly do visit, share and follow blog dakwats ok. hehe. so let's get moved on to Chapter 2 , bismillah ...

CHAPTER TWO : IDENTIFYING COMPETITIVE ADVANTAGES

To survive and thrive and organization must create a competitive advantage :

• Competitive Advantage - a product or service that an organization's customers place a greater value or towards your product and services on than similar offerings from a competitor (added value on product and services).To make it easier for you to understand, competitive advantage = surviving the market place

• First-mover Advantages (first people who started the advantage) - occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. do you ever heard, Intel  is the first organization that use delievery  process their brands to the customer's house in the market or should i say, to the world.

Organization watch their competition through environmental scanning :

• Environmental scanning - the acquisition and analysis of event and trend in the environment external to an organization ,in a simple words is current trend prevailing in the industry, get it ?

Three common tools used in industry to analyze and develop competitive are Porter's Five Force Model, Porter's three generic strategies and Value chains.

PORTER'S FIVE FORCES MODEL : 

       

• Buyer Power 

Buyer power is low when they have few choices, and high when they've many choices. In order words, when they have many choices their power to purchase is high and when they are lack of choices, their power to purchase is low. For example, You, yourself as a buyer. If you've many choices, you will get to choose the products that is convenience and suits to yourself and maybe with a cheaper price compore to the other products.

a)     Loyalty Program

1. Rewards customers based on the amount of business they do with a particular organization.

b)    Switching Cost

1. Cost that can make customer refused to change or switch to another product or service.

• Supplier Power 

Supplier power is high when buyers have few choices of whom to buy and low when their choices are many. 

Business to business (B2B) marketplace - Internet-based service that brings together many buyers and sellers.

2 types of B2B :

1. Private exchange - buyers open its needs and open bidding to any supplier who would care to bid with a low price.
2. Reverse auction - increasing lower bids are solicited from organizations willing to supply the desired service or product at an increasingly lower price.

Thank You for spending your time reading my blog :) anyeongg

xoxo

dakwats.blogspot