IDENTIFYING COMPETITIVE ADVANTAGES

Now, this time I want to give my opinion about what i know about COMPETITIVE ADVANTAGE.

Competitive  advantage is very important because it can ensure our company or our product is greater than our competitive.

For example Honda take a full strategic to ensure that their product can beat with other competitor like Toyota.

Buy Power

The ability from a customer to choose what product they want to buy.

Thats mean they have many choices either to buy or not the product..

 The way to reduce BUY POWER:

-Switching Cost:costs that can make customer not buy another product.

-Loyalty Program:gives a rewards to customer who buy their product,so they not buy another product.

 Supplier Power

The ability of supplier to chance the price of product.

They can increase or decrease the product when they want because the have the power to do it.

Usually the product only exist single in certain place like TNB at Malaysia.

Threat of Substitute Product or Service

High when there are alternative product that customer can choose besides that product.

For example is tea and coffee

Threat of New Entrants

High when it is easy for a new competitor to enter the market.

For example is when Vico enter to the market to beat with Milo. It can give high entrance to Milo because it is easy to barrier and it make Milo have to beat with many competitor.

VS

Rivalry Among Existing Competitors

High when competition is fierce in a market.

Product differentiation:occurs when a company develop unique product to beat with another product.

For example is Etiqa Insurans develop a new product that mixed TAKAFUL AND INSURANS

 That all for today.

See you at the next chapter.

Peace