MGT300, Chapter 2: Identifying Competitive Advantage

INTRODUCTION
Product and service that a customers find a place that have a greater value on the similar offer from a competitor.
Identifying Competitive Advantage have 3 point which is:
     • FIVE FORCE MODEL
     • GENERIS STRATEGIES
     • BETWEEN BUSINESS PROCESS AND VALUE 
      CHAIN.
  
But have a subtopics in each topic:
  
 FIVE FORCE MODEL 
  1) Buyer power 
     when high supplier the buyer have many
      choice of whom to buy.
     When their low supplier the buyer only
     Choices are few.
  2) Supplier power
     High- buyers have few choices of whom to
      Buy from.
      Low- when their choices are many
3) Threat
      High- there are many alternatives to a 
      Product or service.
     Low- there are few alternatives from which to 
     Choose.
  4) Threat of new entrants 
      High- when it is easy for new competitors to
      Enter a market.
      Low- when there are significant entry barriers
     to entering a market.
5) Rival among existence competitors
     High - when competition is fierce in a market
     Low - when competition is more complacent.
THREE GENERICS STRATEGICS 
  - COST LEADERSHIP 
    * becoming a low cost producer in the industry allows the company to lower prices to customers.
   - Differentiation 
      * Create competitive advantage by distinguishing their products on one or more features important to their customers.
  - Focused strategy
      * concentrates on either cost leadership or differentiation.
BETWEEN BUSINESS PROCESS AND VALUE CHAIN.
      * SUPPLY CHAIN - a chain or series of processes that adds value to product & service for customer .
      * Add value to its products and services that support a profit margin for the firm.