Michael Porters Competitive Advantage 6110

Competitive Advantage Author: Michael Porter Instructor: Wesley Shu

How a firm can actually create and sustain a competitive advantage in its industry

Two Basic Types ,[object Object],[object Object]

Value Chain ,[object Object],[object Object]

Primary Activities ,[object Object],[object Object],[object Object],[object Object]

Primary Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Primary Activity Focus by Industry X Marketing & Sales X Xerox Corporate Lending NA X Restaurant X X Distributor Service Outbound Logistics Operations Inbound Logistics Industry

Support Activities ,[object Object],[object Object],[object Object]

Competitive Scope ,[object Object],[object Object],[object Object],[object Object]

“ Generic” Competitive Advantage ,[object Object],[object Object],[object Object]

Competitive Strategies Differentiation Focus Cost Focus Narrow Target Differentiation Cost Leadership Broad Target Competitive Scope Differentiation Lower Cost Competitive Advantage

Cost Leadership Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]

Cost Leadership – Cost Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cost Leadership – Cost Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object]

Cost Dynamics ,[object Object]

Cost Dynamics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Reconfigure the Value Chain ,[object Object],[object Object]

Steps in Strategic Cost Analysis ,[object Object],[object Object],[object Object],[object Object]

Differentiation ,[object Object],[object Object],[object Object]

Identify Sources of Differentiation

Drivers of Uniqueness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Drivers of Uniqueness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Why buyers purchase? ,[object Object],[object Object],[object Object]

Differentiation for creating Buyer Value by ,[object Object],[object Object],[object Object],[object Object],Through

Steps in Differentiation ,[object Object],[object Object],[object Object],[object Object]

Discussion: Red Ocean to Blue Ocean

Other Discussion ,[object Object],[object Object],[object Object]

Michael Porters Competitive Advantage 6110

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