MGT 300 (CHAPTER 2..IDENTIFYING COMPETITIVE ADVANTAGES..:-)

Assalamualaikum..

In this chapter, I learn about how each of organization survive their company..The company must create a COMPETITIVE ADVANTAGES in order to survive and thrive the organization..

That means, they should have the same offer but must place a greater value on that similar offerings..

Before each of company enter to the market,they will be a FIRST MOVER ADVANTAGES..that is they come out with different product or services compare to others.

Next, an organization can develop competitive advantages through 3 common tools :-

PORTER'S FIVE FORCES MODEL : It means the relative attractiveness of an industry..

• Buyer/Purchasing Power - the ability of buyer to directly impact the price they are willing to pay for an item.. 
• Switching Cost - cost that can make customer reluctant to switch to another product or services. 
• Loyalty Program - rewards based on the amount of business..Eg: Redeem a point,Voucher.. 

• Supplier Power - the supplier ability to directly impact the price they are charging for supplies.. 
• Threat of New Entrants - 
• High (When easy for company to enter a market) 
• Low (When the company difficult to enter a market) 
• Threat of Substitute Product or Services - 
• High (When many alternatives to a product or services) 
• Low (When few alternatives from which to choose) 
• Rivalry Among Existing Competitors - 
• High (When competition is fierce)
• Low (When competition is more complacent)

PORTER'S THREE GENERIC STRATEGIES : It means organizations typically follow one of Porter's three generic strategies when entering a new market.

VALUE CHAIN - When an organization chooses its strategies,it can use tools such as the value chain to determine the success or failure of its strategies.

That's all that I can tell about this chapter,later I will discuss about other chapter..

Thank You..