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Lt5 CompetitiveStrategy
Lt5 CompetitiveStrategy
Lt5 CompetitiveStrategy
Outline
Introduction
Sustainable competitive advantage (SCA)
Sources of SCA
Strategies for
Market Leaders
Challengers
Followers, and
Nichers
Introduction
Having a competitive advantage is necessary
for a firm to compete in the market
But what is more important is whether the
competitive advantage is sustainable
A firm must identify its position relative to the
competition in the market
By knowing if it is a leader, challenger,
follower or nicher, it can adopt appropriate
strategies to compete
Sustainable Competitive
Advantage
A good strategist seeks not only to “win the
hill, but hold on to it.” Subash Jain
Sustaining competitive advantage requires
erecting barriers against the competition
Aakers suggested looking at the following:
How you compete
Basis of competition
Where you compete
Whom you are competing against
Examples of SCA
For many years, Singapore Airlines were riding on its
SCA of having the best in-flight service
As more airlines improved their service and narrowed
the gap, SIA sought other competitive advantages
among which are
The most modern fleet
Outstanding Service on the Ground
A super entertainment system in its cabins
Comfort in its First Class cabins at an unparallel level
Discuss whether the later initiatives had been
sustainable
Sun Tze’s defensive strategy