There are four scopes that may affect a company's value chain: segment scope, vertical scope, geographic scope, and industry scope. Segment scope refers to differences required to serve different product or buyer segments, while vertical scope is the division of activities between a firm and its suppliers, channels, and buyers. The document also discusses three types of "generic" competitive advantages: cost leadership, differentiation, and focus.

1. Competitive Scope & Advantage

2. Competitive Scope
• Four scopes may affect
value chain
• Ex. The value chain serves minicomputer
requires extensive sales assistance, less
hardware performance – different from
what serves small business

3. • Segment Scope
Differences required to serve different
product or buyer segment
• Vertical Scope
Division of activities between a firm and its
suppliers, channels, and buyers
Competitive Scope

4. • Geographic Scope
Different geographic areas
• Industry Scope
Interrelationships among business units
Competitive Scope

5. “Generic” Competitive
Advantage
• Cost Leadership
• Differentiation
• Focus

6. “Generic” Competitive
Advantage
• Cost Leadership
• Differentiation
• Focus