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Michael Porters Competitive Advantage 6110

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Competitive Advantage Author: Michael Porter Instructor: Wesley Shu
How a firm can actually create and sustain a competitive advantage in its industry
Two Basic Types ,[object Object],[object Object]
Value Chain ,[object Object],[object Object]
Value Chain
Primary Activities ,[object Object],[object Object],[object Object],[object Object]
Primary Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Primary Activity Focus by Industry X Marketing & Sales X Xerox Corporate Lending NA X Restaurant X X Distributor Service Outbound Logistics Operations Inbound Logistics Industry
Support Activities ,[object Object],[object Object],[object Object]
Support Activities ,[object Object],[object Object],[object Object]
Competitive Scope ,[object Object],[object Object],[object Object],[object Object]
Competitive Scope ,[object Object],[object Object],[object Object],[object Object]
“ Generic” Competitive Advantage ,[object Object],[object Object],[object Object]
Competitive Strategies Differentiation Focus Cost Focus Narrow Target Differentiation Cost Leadership Broad Target Competitive Scope Differentiation Lower Cost Competitive Advantage
Cost Leadership Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Operating Cost Assignment
Asset Assignment
Cost Leadership – Cost Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost Leadership – Cost Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cost Leadership – Cost Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object]
Identify Cost Drivers
Cost Dynamics ,[object Object]
Cost Dynamics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How to Achieve Cost Advantage
Analyze Cost Advantage
Control Cost Drivers
Reconfigure the Value Chain ,[object Object],[object Object]
Steps in Strategic Cost Analysis ,[object Object],[object Object],[object Object],[object Object]
Cost Focus ,[object Object]
Differentiation ,[object Object],[object Object],[object Object]
 
Identify Sources of Differentiation
Drivers of Uniqueness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Drivers of Uniqueness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why buyers purchase? ,[object Object],[object Object],[object Object]
Differentiation for creating Buyer Value by ,[object Object],[object Object],[object Object],[object Object],Through
Steps in Differentiation ,[object Object],[object Object],[object Object],[object Object]
Steps in Differentiation ,[object Object],[object Object],[object Object],[object Object]
Discussion: Red Ocean to Blue Ocean
Other Discussion ,[object Object],[object Object],[object Object]

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Michael Porters Competitive Advantage 6110