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Cards In This Set
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Competitive advantage
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Is a product or service that an organizations customers place a greater value on than similar offerings from a competitor.
-base strategy off of -temporary. constantly being duplicated. -as a buyer org. can create a competitive advantave by locating alternative supply sources. |
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Buyer power
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High: buyers have many choices of whom to buy from
low: choices are few. create competitive ad: reduce BP |
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Loyalty program
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Reward customers based on the amount of business they do with a particular organization
limit buyer power |
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Demand chain:
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Aa
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Five forces model
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Helps determine the relative attractiveness of an industry and includes the following five forces
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First mover advantage
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Organization can significantly impact its market share by being first to market with competitiveadvantage
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Supplier power
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High: buyers have few chocies of whom to buy from
low: choices are many wants buyer power to be low.... |
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Supply chain
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All parties indirectly invovled in the procurment of a product or raw material.
an organization will be both a supplier (to customers) and a customer of other supplierz. |
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Threat of substitute products of services
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High: many allternatives to a product
low: few alternatives from which to choose org. wants to be in market few subs. |
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Switching costs
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Can be done to create a competitive advantage
costs that can make customers reluctant to switch to another product or service does need a monetary cost if customer switches, they do not get the discount anymore. |
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Threat of new entrants
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High: easy for new competitors to enter a market
low: significant entry barriers to entering a market |
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Entry barrier:
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Product or service feature that customers have come to expect from or ganizations in a particular industry and must be offered by an entering org. to compete and surive.
free checks, atm machine, drive thru, |
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Rivalry amoung exisiting competitors
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High: competition is firce in market
low: competition is more complacent |
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Value creation
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Organization as a series of processes each of which adds value to the product or serivce for each customer
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Primary value activities
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Aa
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