Competitive Advantage

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This simple presentation discuss on resources and capabilities of the organization in order to meet competitive advantage, which divide into two types: Cost Competitive Advantage and Differentiation Competitive Advantage.

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Competitive Advantage

  1. 1. Please Visit: FreePresentation.Org Competitive AdvantageCompetitive Advantage
  2. 2. Please Visit: FreePresentation.Org You can download this presentation at:You can download this presentation at: http://http://freepresentation.orgfreepresentation.org Please visitPlease visit FFreePresentation.reePresentation.orgorg for morefor more presentations on marketing, strategypresentations on marketing, strategy and case solutionand case solution
  3. 3. Please Visit: FreePresentation.Org Competitive advantage; when a firm sustains profits more than average for its industry, over the rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.
  4. 4. Please Visit: FreePresentation.Org Two basic types of competitiveTwo basic types of competitive advantageadvantage • Cost advantage • Differentiation advantage
  5. 5. Please Visit: FreePresentation.Org A Model of Competitive Advantage Resources Capabilities Distinctive competencies Cost Advantage or Differentiation Advantage Value Creation
  6. 6. Please Visit: FreePresentation.Org Resources and Capabilities
  7. 7. Please Visit: FreePresentation.Org Are the firm-specific assets useful for creating a cost or differentiation advantage and that few competitors can acquire easily. • Patents and trademarks • Proprietary know-how • Installed customer base • Reputation of the firm • Brand equityRESOURCESRESOURCES
  8. 8. Please Visit: FreePresentation.Org Capabilities refer to the firm's ability to utilize its resources effectively. An example of a capability is the ability to bring a product to market faster than competitors. Such capabilities are implanted in the routines of the organization and are not easily documented as procedures and thus are difficult for competitors to duplicate.
  9. 9. Please Visit: FreePresentation.Org Distinctive CompetenciesDistinctive Competencies
  10. 10. Please Visit: FreePresentation.Org RESOURCES CAPABILITIES These competencies enable innovation, efficiency, quality, and customer responsiveness, all of which can be leveraged to create a cost advantage or a differentiation advantage.
  11. 11. Please Visit: FreePresentation.Org Cost Advantage and Differentiation Advantage
  12. 12. Please Visit: FreePresentation.Org Competitive advantage is created by using resources and capabilities to achieve either a lower cost structure or a differentiated product
  13. 13. Please Visit: FreePresentation.Org Value CreationValue Creation To achieve a competitive advantage, the firm must perform one or more value creating activities in a way that creates more overall value than do competitors. Superior value is created through lower costs or superior benefits to the consumer (differentiation).
  14. 14. Please Visit: FreePresentation.Org

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