Chapter 2 - Identifying Competitive Advantage

After Completing this topic, we should be able to

• Explain why Competitive Advantages are typically temporary.
• List and explain each of the five forces in Porter's Five Forces model.
• Compare Porter's three generic strategies.
• Dexcribe the relationship between business process and value chain.

There are 3 ways of Porter's Generis Strategies

Michel Porter also created five Forces Model

• Rivalry among existing competitors
• Buyer Power
• Supplier Power
• Threat of new entrants
• Threat of substitute product

there also a slide about Michel Porter's forces model....

gently, Click Here

Competitive Advantage???

A product or services that an organization's customers place a greater value on than similar offerings from a competitor but Competitive advantage is temporary because competitors keep changing their strategies to become more benefit for their company. Then, the company should start the new competitive advantage.

Value Chain

A Value Chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or services for the market

Supply Chain

A supply Chain is a chain or series of processes that adds value to product & service for customer