What do you think is the competitive advantage of….

BUILDING COMPETITIVE ADVANTAGE

Brand Power
Unique Customer Experience

Design Excellence speed

Brand power
 UNIQUE CUSTOMER EXPERIENCE
DESIGN EXCELLENCE
SPEED
Building Competitive Advantage
CA- Requisite for Delivering Value
CA- Requisite for Executing Strategy
CA-Its Nature and Significance
 A position of superiority in relation to its competition.
 Production /R&D/ Marketing.
Value Delivery-Strategy-CA
1.Value delivery-CA
2.Value delivery-strategy-CA
3.Above average Rate of Return
4.Good products-successful products
CA-Nature & Significance
1.Superior Position
2.Distinct from Strength
3.Industry’s Best Practices
4.CA-Test
Sources of CA
Multitude of Sources-Strengths & Weakness
Cost-Advantage
Differentiation Advantage

Unique production facilities, efficient distribution,

better technology, ingenious raw material handling.
Diagnosing and appraising the Firm’s
CA
1.S-W Analysis and I&C Analysis together lead to
diagnosing CA
2.Distinction between S-W Analysis and CA Diagnosis
#Step-by-Step Approach in identifying CA’s
Start with S-W Analysis
Zeroes in on the specific CA Factors
Moves on to I&C Analysis
Select a number of CA Factors
How do firms build CA?
1.Built at Corporate, SBU And Product/Brand Levels
2.Corporate Level CA spills over to Business level and vice
versa
• 3.Firms build CA using a variety of routes and tools
 Lower cost
 Superior Resources
 Technology and R&D
 Integration
 Creation of entry barriers
 Alliances
Innovations in various functions
Superior marketing capabilities
Speed in operations and compression of cycle and
response time.
Strength in HR
Strength in distribution channels