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

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

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

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

5. 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,