Helloo chapter two hee

Bismillah...

IDENTIFYING COMPETITIVE ADVANTAGE

okay lets get started..

Alright, competitive advantage is a product or service that a customer place a greater value on it. An organization offering the same product as a competitor but their added something that make the product special than the competitors. 

for example :

I'm know that everyone have heard this slogan "Now everyone can fly".  Air Asia is the first airlines that introduced a low cost and cheap flight tickets over 100 destination across Asia. Air Asia is the first-mover advantage . It occur when an organization impact its market share by being first to market with a competitive advantage. 

There is 3 tools used in industry to analyse and develop competitive advantage.

1. Porter's 5 forces model

• Buyer power

          - high when buyer have many choices

          - low when buyer have few choices

        There is 2 way to reduce buyer power through :

          1) Loyalty program - Rewards customers based on the amount of business

              they do with a particular organization.

          2) Switching cost - Cost that can make customer refused to change or switch 

              to another product or service.

• Supplier power

           - High when buyer have few choices

           - Low when buyer have many choices

           - Supplier chain :

                                                                                        

            - Business to business (B2B) marketplace is a internetbased service that 

               brings together many buyers and sellers. There is 2 types of B2B:

                   a. Private exchange is a buyers open its needs and open bidding to any 
                       supplier who would care to bid with a low price.

                   b. Reverse auction is an increasing lower bids are solicited from 
                       organizations willing to supply the desired service or product 
                       at an increasingly lower price.

• Threat of new entrants

              - high when it is easy for new competitors to enter a market

              - low when it is barriers to enter the market

              - entry barriers is a product or service feature that customers have come to
                expert from organization to compete and survive.

• Rivalry among existence competitors

          - high when competition is fierce in a market.

          - low when competition is more complacent.

  
(2) The 3 generic strategies

                                                                               

  (3) Value Chain 

                                                                           

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