Monday, 15 July 2013


What is competitive advantage?

  • A product or service that an organization's customers place a greater value on than similar offerings from a competitors.
  • Unfortunately, CA is temporary because competitors keep duplicate the strategy.
  • Then,the company should start the new competitive advantages.


  • Michael Porter's Five Forces Model is useful tool to aid organization in challenging decision whether to join new industry or industry segment.

  • Buyer Power
-high :when buyer have many choices of whom to buy.
-low :when their choices are few.
-to reduce buyer power,an organization must make it more attractive to buy from the company not from the competitors.

  • Supplier Power
-high :when buyer have few choice of whom to buy from.
-low :when their choices are many.

  • Threat of substitute product and services.
-high :when there are many alternatives to a product or service.
-low :when there are few alternative from which to choose.

  • Threat of new entrants.
-high :when it is easy for new competitors to enter a market.
-low :when there are significant entry barriers to entering a market.

  • Rivalry among existence competitors
-high :when competitors is fierce in a market.
-low :when competitors is more complacent.

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