MGT 300, Chapter 2 : Identifying Competitive Advantages

MGT 300, Chapter 2 : Identifying Competitive Advantages

In this chapter, I have learned ways to survive and thrive of an organization in industry.

i) Competitive Advantage
a service or product that an organization's customers place a greater value on than similar offerings from other competitor. For example sports clothing's companies from Nike and Adidas. They sells a same products;shoes,t-shirt,tracksuit,socks and others.
*this is shoe's from adidas, the predator 

*this is nike, the mercurial

ii) First mover advantage
organization impact its market shar by being first to market with a competitive advantage
for example,before air asia enter to the industry,MAS is a single company that involve in airplane.

Porter 's Five Forces Model
i) Buyer Power
ability of buyers to directly impact the price they are willing to pay for an item.
high as customers have many choices.
'Customers Always Right'

ii) Supplier Power
ability of supplier to directly the price they are charging for supplies.
high as there are limited product's manufacturers to choose from.

iii) Threat of Substitute Products or Services
high as there are numerous transportation alternatives

iv) Threat of New Entrants 
high as new airlines are continuously the market

v) Rivalry Among Existing Competition
high when competition is fierce in a market and low when competition is more complacent

Know Your Competitive Advantages and Strategies

competitive advantage is a unique strength that a certain firm has over it competition. It allows the company to increase sales, improve margins, and/or maintain customer loyalty. The competitive advantage can be created in cost structures, product offerings, supply chain networks, customer relationship management programs, sales strategies and more.
Understanding your company’s competitive advantage can mean the difference between dominating the market and falling short of your competition. By knowing and developing strategies to sustain your competitive advantage, you can make it more difficult for the competition to take control of the market.


The identification of your competitive advantage is so important that the Queensland Government makes it a key page on their website. By understanding your firm’s competitive advantages, you can create a solid foundation for all of your marketing efforts for years to come.
Although it can be tempting to choose multiple competitive strategies, you should always focus on the one thing your company does better than anyone else. Spreading your resources out over multiple processes will simply lead to mediocre performance across the board and leave your firm susceptible to its competition.
Take some time to analyse every aspect of your business. Are your business processes more efficient than your competitors? Do you have more expertise in the development of your products or services? Are your products or services completely unique when compared to the competition? You can also use a SWOT Analysis or Porter’s Five Forces to help you identify your competitive advantage.
Your competitive advantage can be found anywhere within your business model and it is worth spending the time to determine what makes your firm stand out the most!


All of your marketing processes and strategies should focus on highlighting your competitive advantage. Your best marketing strategy depends on your firm’s unique strength, but there are several general strategies to follow when attempting to capitalise and sustain your company’s competitive advantage:
1. Cost Leadership Strategy
Firms implementing a cost leadership strategy focus on being the lowest cost producer in the industry. This strategy can include investments in efficient technologies, economies of scale, priority access to raw materials and other elements. The firm must be diligent in identifying and exploiting all possible opportunities for cost advantages.
2. Differentiation
Differentiation is almost an opposite of the cost leadership strategy. Firms seeking differentiation must provide unique products or services and add value for their buyers. Typically, a differentiated firm focuses on a few key attributes that many consumers in the market place high value upon. When correctly implemented, this strategy commands higher prices.
3. Focus
A focus strategy can be based on cost leadership or differentiation, but targets a more narrow scope than other companies in the industry. These firms choose a certain market segment and tailor all business processes towards dominating that smaller market share.

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