1. CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham

2. CBM Week 2 HOW TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE

3. CBM Week 2 Learning Outcomes By the end of this session the student will be able to: Discuss and critically evaluate approach to diagnosing and developing sustainable competitive advantage for an orgainsation

4. CBM Week 2 Recap Last week we reviewed analytical tools. Value chain McKinseys 7 ‘s Porters competitive strategies and five forces models

5. CBM Week 2 COMPETITIVE ADVANTAGE

6. CBM Week 2 As the environment is changing rapidly, organisation have to achieve competitive advantage. Organisations therefore need to take care of three key areas; identifying sources of competitive advantage implementing competitive advantage defending competitive advantage

7. CBM Week 2 HOW TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE THROUGH COST LEADERSHIP

8. CBM Week 2 The Value Chain Model Porter Value Chain model is important to sustainable competitive advantage. Why?

9. CBM Week 2 Porter Value Chain Model

10. CBM Week 2 The Value Chain Model Value chain analysis describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization. Therefore, it evaluates the value each particular activities adds to the organizations products or services.

11. CBM Week 2 The Source of Competitive Advantage Porter argues that the ability to perform particular activities and to manage the linkages between these activities is a source of competitive advantage.

12. CBM Week 2 Competitive Advantage Michael Porter, in his book, Competitive Advantage: Creating and Sustaining Superior Performance, 1985, states that competitive advantages exists when an organisation is able to deliver the same benefits as a competitor but at a lower rate. (Cost advantage)

13. CBM Week 2 Competitive Advantage Delivering benefits that exceed those of your competitors. (Differentiation advantage) Together they are known as Positional Advantage

14. CBM Week 2 A Model of Competitive Advantage Distinctive Competencies Distinctive Competencies Resources Capabilities Cost Advantage or Differentiation Advantage Value Creation

15. CBM Week 2 The Value Chain Model The organisation is creates value by carrying out a series of activities that Porter calls the value chain.

16. CBM Week 2 Achieving cost leadership through economies of scale Cost leadership can be implemented in a number of ways; companies can use economies of scale. How can I achieve this?

17. CBM Week 2 Porters Five Forces and Cost Leadership Where is the connection?

18. CBM Week 2 Video http://www.bing.com/videos/search?q=sustai ning+competitive+advantage&sk=&docid=27 8531212030&mid=1A1CABA79BD5E50160 721A1CABA79BD5E5016072&FORM=LKV R#

19. CBM Week 2 Tasks http://www.oup.com/uk/orc/bin/97801992164 68/01student/mcqs/ch06// Read - http://ericbrown.com/competitive- advantage-and-the-resource-based-view-of- the-firm.htm Then complete http://www.oup.com/uk/orc/bin/97801992164 68/01student/mcqs/

20. CBM Week 2 Summarise There are many ways to achieve competitive advantage. Environmental analysis is crucial but all concepts and theories must be integrated to maintain the edge.

21. CBM Week 2 Homework Research and write notes on achieving sustainable competitive advantage.