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GROUP-10(0M)

The document discusses competitive advantages in businesses, emphasizing the importance of factors such as superior quality, efficiency, and customer responsiveness in gaining an edge over rivals. It outlines various routes to achieving competitive advantage, including brand reputation and supply chain management, while also addressing the durability of these advantages and reasons for their potential failure. Strategies for avoiding failure include continuous improvement and benchmarking against industry best practices.

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amreen0509
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13 views

GROUP-10(0M)

The document discusses competitive advantages in businesses, emphasizing the importance of factors such as superior quality, efficiency, and customer responsiveness in gaining an edge over rivals. It outlines various routes to achieving competitive advantage, including brand reputation and supply chain management, while also addressing the durability of these advantages and reasons for their potential failure. Strategies for avoiding failure include continuous improvement and benchmarking against industry best practices.

Uploaded by

amreen0509
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMPETITIVE ADVANTAGES

IN BUSINESSES

PREPARED BY:GROUP10

DHARAMPAL SINGH
KOUSTUBH CHOUBEY
MADHU VIKRAM BONDADA
P. SPURTHI
POOJA MISHRA
V BHARATH
Competitive Advantage

Business model

Minimizing the cost structure

High responsiveness

Managing supply chain


Competitive Advantage

Competitive advantage is what allows a firm to gain


an edge over its rivals in attracting customers and
defending against competitive forces
Building blocks of competitive advantage

Superior Quality

Competitive advantage: Superior customer


Superior Effi ciency
.Low cost responsiveness
.Differentiation

Superior innovation
Many routes to Competitive
Advantage
Quality

Superior customer service

Achieving lower costs

Technical expertise

Supply chain management

Brand image / reputation


Strategy, Resources, Capabilities and
Competencies
C. A. IN RIVALS: A COMPARISON
The Value Chain
Primary Activities

OUTPUT
Research and Marketing Customer
INPUT

Production
development and sales service

Company Information Materials Human


infrastructure systems management resources

Support Activities
Value creation per unit

U-P U=utility to consumer


P=price
U C=costs of production
P-C U-P=consumer surplus
P-C=profit margin
U-C=value created
P
C
C Includes cost of capital per
unit
Competitive advantage

Same product as the competitor but value


creation through
Robust sales and marketing

Brand promotion

Targeting other physicians too


Durability of competitive advantage

Barriers to imitation
Imitating resources(GM imitated Ford, Coke
imitated Pepsi)
Imitating capabilities (is difficult)
Capability of competitors(U.S automobile
industry)
Absorptive capacity
Industry dynamism (PC industry)
Why competitive advantage fails?

Inertia (IBM- Organizational Capabilities)


Prior strategic commitments
The Icarus Paradox by Danny Miller
Craftsmen- Texas instruments, DEC
Builders- Gulf & Western, ITT
Pioneers- Wang Labs
Salesmen- P&G, Chrysler
Steps to Avoid Failure

Focus on the Building Blocks of Competitive advantage

Institute Continuous Improvement and learning

Overcome Inertia

Track best industrial practices and use benchmarking

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