Assignment 3 ii
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This document discusses competitive advantage and strategies. It defines competitive advantage as something an organization possesses exclusively or does better than competitors. Competitive strategy is about how a firm will compete in its chosen market to gain an advantage like lower costs or better customer service. Porter's generic strategies of low cost leadership, differentiation, and focus are presented. Low cost leadership aims to have the lowest production costs while differentiation seeks uniqueness to command premium prices. Focus strategy targets a narrow market segment. Core and distinctive competencies that give competitive edges are also defined.
Assignment 3 ii
- 1. PIDP3240 – Assignment #3 PowerPoint II Marketing Strategy Competitive Advantage and Competitive Strategies 2-1
- 2. Topics 1 Competitive Advantage 2 Competitive Strategy 3 Porter’s Generic Competitive Strategy 2-2
- 3. 1. Competitive Advantage Competitive advantage is something that the organization possesses exclusively or does better than the competition 2-3
- 4. Firm Resource-based Competency Core Competencies Things a corporation can do exceedingly well Distinctive Competencies Core competencies that are superior to those of competitors They are critical in helping a firm pursue competitive strategies 2-4
- 5. 2. Competitive Strategy •the choice of how a firm will compete in its chosen market. •The purpose is to seek a position of competitive advantage such as low cost, operational excellence, higher product quality, and superior customer relationships. 2-5
- 6. 3. Porter’s Generic Competitive Strategies 2-6
- 7. Low Cost Leadership “A true cost leader gears all its strategic choices to the single goal of squeezing out every cent of production and distribution costs to provide a competitive advantage” Save $ through whole supply chain 2-7
- 8. Internal strengths: Access to the capital required to make a significant investment in production assets –economic scale, for example, WalMart. (9700 retail units in 28 countries) http://walmartstores.com/AboutUs/ Skill in designing products for efficient manufacturing, for example, TQM, avoiding waste, for example, TOYOTA. Efficientdistribution channels-Saving transportation/warehousing cost, for example, Costco. 2-8
- 9. Differentiation Leadership Objective is to create a competitive advantage by offering a product or service that is perceived by the customer to be unique in some desirable way. Therefore obtain a premium price. 2-9
- 10. Internal strengths: Access to leading scientific research. Highly skilled and creative product development team. Strong capability to successfully communicate the perceived strengths of the product. Corporate reputation for quality and innovation. 2-10
- 11. Focus Strategy Directed at Serving the Needs of a Limited Market Segment 2-11
- 12. 2-12