Competitive Advantage Scope Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage (Porter M E, 1985)

2 4 5 3 1 8 7 6 High Low Perceived added value Price

Potential entrants Substitutes Competitive rivalry Buyers Suppliers Substitutes Competitive rivalry Source: Adapted from M.E. Porter, Competitive Strategy, Free Press, 1980,

Better than competitors’ Same as competitors’ or easy to imitate Better than competitors’ and difficult to imitate Resources Competences Johnson, Scholes & Whittington, 2005

Support activities Primary activities Margin Firm infrastructure HRM Technology development Procurement Support activities Primary activities Margin Inbound logistics Operations Outbound logistics Marketing and sales Service Source: Adapted from M.E. Porter, Competitive Strategy, Free Press, 1985,