1. Building Competitive Advantage

2. Competitive Forces Threat of Substitutes Threat of New Entrants
Rivalry among Firms
Bargaining Power of Suppliers
Bargaining Power of Buyers

3. Portfolio Strategies
A method of analyzing an organizations mix of businesses in terms of both individual and collective contributions to strategic goals
Three Common
BCG (Boston Consulting Group)
GE Business Screen
Product/Market Evolution Matrix

4. BCG Growth Matrix Relative Market Share Market Growth Rate High Low
Stars
Question Marks
Cash Cows
Dogs

5. Product/Market Evolution Matrix
Develop
Growth
Shakeout
Maturity
Decline
Strong Average Weak

6. Product-Process Life Cycle$
Maturity
Decline
Growth
Introduction
Time

7. Responsiveness Customer Satisfaction 6 Dimensions of Competition
Cost + Quality +Dependability + Flexibility + Time + Service
6 Dimensions of Competition
Continuous R&D + Advanced Tech Integration
Improvements People & Systems
Structural Prerequisites

8. Competitor Analysis Direct Competitors Indirect Competitors
Future Competitors

9. Competitive Intelligence
Conferences / trade shows
Trade magazines
Customers
Purchase competitor products
Competitor Web Sites
Information Networks

10. Competitive Advantage
Create a vision
Mission Statement
State the value proposition
Create the business model
Describe the core competencies & competitive advantage
Act

11. Vision Clarity Consistency Uniqueness Purposeful
We strive to preserve and improve life through the innovation of biomedical devices while supporting, training, and inspiring our employees so that individual ability and creativity is leased and rewarded. Our goal is to be the leader in our industry by 2006 and be widely known throughout the world.

12. Mission Statement Core values Customers / stakeholders Products
Competitive Advantage
Values provided to customer
Markets
Our mission is to design and manufacture electronic devices that serve the needs of the aerospace industry on a timely basis and at reasonable prices.

13. Value Proposition
Product
Price
Access
Service
Experience

14. Value Proposition

15. Business Model Customer selection Value proposition Differentiation
Scope of product/activities
Organizational design
Value capture for profit
Value for talent

16. Business Model (Dell) Customer Corp, Govt, Ed, Indiv
Value customized computer
Differentiation direct sales, service
Scope desktops, laptops, servers
Organization divisional by customer seg
Value capture focus on service, access
Value for talent career opportunities

17. Business Model

18. Core Competencies
Core competency of Google is the design and operation of a software search engine. It is the dominant online search engine. While starting as a search tool for finding information on diverse subjects, it has also become a tool for people searching for an online site selling a product of interest.

19. Sustainable Competitive Adv.
High quality Toyota
Service Starbucks
Price Wal-Mart
Mrkt Segment Dell
Product Breadth Amazon
Innovation Medtronic
Intellectual Prop. MicroSoft