indentifying competitive advantages
by ezzati zamri
1. First-mover advantage
2. occurs when significantly impact its market share by being first to market with a competitive advantage
3. 3 common tools used on dto analyze and develop competitive advanatage: > porters five model > porters three generic strategies > value chains
4. 2. Supplier Power · 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 - Example, 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
5. Best practices of IT to create competitive advantage: 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
6. 4. THREAT OF NEW ENTRANTS > High when competition is fierce in a market. > Low when competition is more complacent > ENTRY BARRIER- a product or service feature that customers have to come expect from organization > Reduce cost by using effective supply chain.
7. 5. RIVALRY AMONG EXISTING COMPETITORS > High when competition is fierce in a market. > Low when competition is more complacent > the overall trend is toward increased competition in just about every industry > Reduce cost by using effective supply chain.
8. typically temporary bcs competitors often seek ways to duplicate the competitive advantage
9. Competitive advantage
10. 1. Buyer Power
10.1. High – when buyers have many choices of whom to buy
10.2. Low – when their choices are few
10.3. To reduce buyer power (and create competitive advantage), an organization must make it more attractive to buy from the company not from the competitors
10.4. Best practices of IT based
10.5. - Loyalty program in travel industry, for example rewards on free airline tickets or hotel stays
11. 3. THREAT OF SUBSTITUTE PRODUCT OR SERVICES > High when there are many alternatives to a product or service. > Low when there are few alternatives from which to choose. > Ideally, an organization would like to be on a market in which there a few substitutes of their product or services. > Best practices of IT: Electronic product- same function different brands. Threat of new entrants: High when it is easy for new competitors to enter a merket. Entry Barrier is a product feature that customers have to expect from organizations in a particular.
