Thursday 4 July 2013

CHAPTER 2

COMPETITIVE ADVANTAGE


  • a product or service that an organization's customer place a greater value on than similar offerings from a competitor.
PORTER'S FIVE FORCES MODEL
  1. buyer power
    high - when buyers have many choices of whom to buy
    low - when their choices are few
  2. supplier power
    high - when buyers have few choices of whom to buy
    low - when their choices are many
  3. threat of substitute products or services
    high - when there are many alternatives to a product or services
    low - when 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. rivalry among existing companies 
    high - when competitors is fierce in a market
    low - when competition is more complacent
     
THREE GENERICS STRATEGIES
  • cost leadership
  • differentiation
  • focused strategy

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