competitive advantage

1. PIDP3240 – Assignment #3 PowerPoint II
Marketing Strategy
Competitive Advantage and
Competitive Strategies
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2. Topics
1 Competitive Advantage
2 Competitive Strategy
3 Porter’s Generic Competitive Strategy
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3. 1. Competitive Advantage
Competitive advantage is
something that the
organization possesses
exclusively or does better than
the competition
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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
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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.
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6. 3. Porter’s Generic
Competitive Strategies
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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
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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.
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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.
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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.
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11. Focus Strategy
Directed at Serving the Needs of a
Limited Market Segment
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