THE SECOND CHAPTER

     Bismillahirahmannirahim . Hey you guys :) . we meet again . so you must be wondering what are the next chapter that we learn on our lass class right ? haha . im so excited to tell and explain to you guys what is the next chapter is about ! Lets began the show ~ ok too dramatic isn't it ? hahah

    Okey our next chapter is about IDENTIFYING COMPETITIVE ADVANTAGES . When we were in class our lecturer constantly asked us what do we understand about competitive advantages is ? Well , for what i do understand  is the Competitive Advantage is something that the difference and uniqueness that company in term of their product or services that they offer to their customers which not has been offer by others company . When the company or organization can significantly impact its market share by being first to the market that is called First - Mover Advantage . So, see the picture below if you have that the advantage you will be stronger than others . Other company will see your company as that big sumo while them just that little kid . So this is why it is important to known how to dominate this thing .

 Organization can used 3 tools to analyze and develop competitive advantages , there are :

• Porter's Five Force Model
• Porter's Three Generic Strategies
• Value Chains

                                PORTER'S FIVE FORCE MODEL

           

• BUYER : High when buyers have many choices of whom to buy from , Low when few .  To reduce buyer power : Loyalty program -give customer reward .                                                                                     Switching cost  -cost that can make customer reluctant to switch.

• SUPPLIER : High when buyer have few choices of whom to buy from , Low when few . To reduce supplier power : Business-to-business (B2B) . 

• THREAT OF SUBSTITUTE PRODUCTS OR SERVICES : High when many alternatives , Low when few alternatives . To reduce : Switching cost  -cost that can make customer reluctant to switch.

• THREAT OF NEW ENTRANTS : High when it is easy to new competitor to enter market , Low when many barriers to entering market .

• RIVALRY AMONG EXISTING COMPETITORS : High when competitors is fierce in market, Low when competitors is more complacent .

                    PORTER'S THREE GENERIC STRATEGIES

• BROAD MARKET - LOW COST      : Offering the low cost provider of goods for the cost-conscious consumer .
• BROAD MARKET - HIGH COST     : Offering a variety of specialty and upscale product to affluent consumers .
• NARROW MARKET - LOW COST  : Offering a specific product at low prices .
• NARROW MARKET - HIGH COST : Offering a differentiated product, jewelry at high prices .

                                          THE VALUE CREATION

Value chain analysis is a useful tool to determining how to create the greatest possible value for customer . This to identify processes in which the firm can add value for the customer and create a competitive advantage for itself with a cost advantage . It have two categories which is Primary Activities and Support Activities .

Primary Activities :

• INBOUND LOGISTICS : Acquires raw materials and resources and distributes manufacturing as required .
• OPERATIONS : Transform raw materials or inputs into goods and services .
• OUTBOUND LOGISTICS : Distributes goods and services to customers.
• MARKETING AND SALES : Promotes, prices and sell products to customers .
• SERVICES : Provides customer support after the sales products to customers.

Support Activities :

• FIRM INFRASTRUCTURE : Includes the company format or departmental structures, environment, and systems.
• HUMAN RESOURCE MANAGEMENT : Provides employee training, hiring, and compensation.
• TECHNOLOGY DEVELOPMENT : Applies MIS to processes to add value.
• PROCUREMENT : Purchases inputs such raw materials, resources, equipment and supplies.

            Alhamdulillah , thats all for now , thank you for reading and hopefully this gonna be something helpful and useful for you . Im really glad if you do . Dont forget to always up to date with my blog . Thank you :)