What is Identifying Competitive Advantage???
A product or service that an organization’s customers place a greater value on than similar offerings from a competitor. Same like best value product.
The Three Generics Strategies
1. Cost Leadership
Becoming a low-cost producer in the industry allows the company to lower prices to customers.
Competitors with higher costs cannot afford to compete with the low-cost leader on price.
Create competitive advantage by distinguishing their products on one or more features important to their customers.
Unique features or benefits may justify price differences and/or stimulate demand.
Ex: i-care by Proton
3. Focused Strategy
Target to a niche market.Concentrates on either cost leadership or differentiation
The value chains- Targetting business processes
§ Supply chain- a chain or series of processes that adds value to product and service for customer..
§ Add value to its product and services that support a profit margin for the firm..