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  • UNIT-4: Competitive Advantage & Core Competence

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    The document discusses ways for a company to build or acquire a competitive advantage. It describes analyzing internal factors and industry competition to identify strengths. Benchmarking competitors is an effective tool, and a company can examine its value chain to strengthen areas like customer value, production costs, or technology. A large company with multiple product lines should form strategic business units that each contribute to an overall competitive advantage. Ultimately, a company needs to leverage its core skills and can pursue innovation, outsourcing, R&D, mergers and acquisitions, or strategic alliances to gain an edge over competitors.

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    UNIT-4- SM-NEW

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    The document discusses ways for a company to build or acquire a competitive advantage. It describes analyzing internal factors and industry competition to identify strengths. Benchmarking competitors is an effective tool, and a company can examine its value chain to strengthen areas like customer value, production costs, or technology. A large company with multiple product lines should form strategic business units that each contribute to an overall competitive advantage. Ultimately, a company needs to leverage its core skills and can pursue innovation, outsourcing, R&D, mergers and acquisitions, or strategic alliances to gain an edge over competitors.

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    Attribution Non-Commercial (BY-NC)
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    Download as pptx, pdf, or txt
    15 views15 pages

    UNIT-4: Competitive Advantage & Core Competence

    Uploaded by

    milindvora
    The document discusses ways for a company to build or acquire a competitive advantage. It describes analyzing internal factors and industry competition to identify strengths. Benchmarking competitors is an effective tool, and a company can examine its value chain to strengthen areas like customer value, production costs, or technology. A large company with multiple product lines should form strategic business units that each contribute to an overall competitive advantage. Ultimately, a company needs to leverage its core skills and can pursue innovation, outsourcing, R&D, mergers and acquisitions, or strategic alliances to gain an edge over competitors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 15

    UNIT-4

    5/2/12

    COMPETITIVE ADVANTAGE & CORE COMPETENCE


    Click to edit Master subtitle style

    HOW TO BUILD OR ACQUIRE COMPETITIVE ADVANTAGE?


    5/2/12

    INTRODUCTION

    5/2/12

    One needs to appraise internal factors as well as industry competition analysis Any firm can exercise the same only after industry analysis The organization undergoes thorough SWOT The organization tries to access relative & absolute competition
    5/2/12

    Internal appraisal & Industry competition help identifying competitive advantage

    Benchmarking an effective tool in Competitive Advantage Building

    5/2/12

    Types of Benchmarking

    5/2/12

    VALUE CHAIN APPROACH

    The Value Chain approach proposed by Michael Porter We can examine the following ways of value chain to acquire competitive strengths

    5/2/12

    TYPES OF VALUE CHAIN

    5/2/12

    THROUGH CUSTOMER VALUE


    If the firm can create Value for its buyers, it can get benefitted It should be the superior Value than the Value created by the competitors It should deal with differential value May be Price lower or equivalent May be more benefits premium services for high price In general the company should try to generate higher values over the other 5/2/12 competitors

    THROUGH CUSTOMER VALUE

    Better proper grasp over of Strengths & Weaknesses of Competitors

    the the

    Cost Factor, Production Capacity, Financial Strengths, Technological The Company should also work out the beyond boundaries to maximize benefits
    5/2/12

    CG offers Complete Solutions to the

    BASED ON SBU
    Larger corporations with multi products operation should form SBUs Each SBU should be contributing to the Competitive advantage at the Corporate Level Matured SBUs should be the supporting SBUs and not the competing SBUs 5/2/12 The corporation should have a

    BANK ON CORE SKILLS

    5/2/12

    Almost all the firms build competitive advantage around its core skills Core skills should be handled in the ideal & efficient manner When the company fails to utilize its core skills to be converted into advantage, it fails by its strategic stand

    VARIOUS STRATEGIC ROUTES TO BUILD COMPETITIVE ADVANTAGE

    INNOVATION IN ANY EXISTING FUNCTION OF THE COMPANY INTEGRATION OUT SOURCING/ DE-INTEGRATION EXTENSIVE R & D MERGERS & ACQUISITIONS STRATEGIC ALLIANCE WITH OTHER FRIMS

    5/2/12

    THE CONCEPT OF CORE COMPETENCE


    5/2/12

    INTRODUCTION

    To succeed in the long run every firm must posses higher ordered & durable competitive advantage

    5/2/12

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