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.

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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