2.  Source of sustainable competitive advantage. ◦ Intellectual Property ( Patents, brands).  No competitors can access the same intellectual property ◦ Superior business processes.  Profit margins good from low costs / superior quality / customer relations leading to loyalty / etc ◦ Blue ocean strategy.  Breaking out from competitors into ‘new’ markets. 2

3.  Micro-market analysis focuses on customer needs.  Favourable when there is; ◦ Identifiable and unmet need/want.  ( = opportunity) ◦ No other product to meet that need.  (= no competition) ◦ Likely growth of that segment and/or other opportunities.  (= strong future / return on investment)  (Porters generic strategies – focus within segment) 3