1. Technology and competitive advantage ارائه دهندگان : مهدیه سامع آرش کمالی

2. After this presentation you know: What is the definition of competitive advantage? What are two basic types of competitive advantage? Is technological change important for its own sake? What are Michael Porter’s primary and support activities of value chain? Name various technologies are used in both primary value activities and support activities. Name the cost drivers Porter related to value chain activities. Name Porter’s drivers of uniqueness. How each of these drivers affects value chain? What are the tests of a desirable technological change? Explain the effect of technology on Porter’s five forces?

3. Overview Technology impact on Competitiveness Competitive Advantage Cost Cost drivers Differentiation Uniqueness drivers Industry structure 5 Forces

4. Competitive Advantage Besanko, Dranove, and Shanley [2000: 389] say “When a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market, the firm has a competitive advantage in that market.” Porter says “competitive advantage is at the heart of a firm’s performance in competitive markets” Peteraf [1993] defines competitive advantage as “sustained above normal returns.” The goal of much of business strategy is to achieve a sustainable competitive advantage.

5. Technology and Competitive advantage Technology can change the rules of competition It can change the industry structure Play equalizer role! Affect a firm’s competitive advantage Technological change is not important for its own sake!

6. Technology and value chain

7. Cost Advantage and the Value Chain Porter identified 10 cost drivers related to value chain activities: – Economies of scale – Learning – Capacity utilization – Linkages among activities – Interrelationships among business units – Degree of vertical integration – Timing – Firm's policy – Geographic location – Institutional factors (regulation, union activity, taxes, etc.)

8. Cost drivers

9. Differentiation and the Value Chain Porter identified several drivers of uniqueness: Policies and decisions Linkages among activities Timing Location Interrelationships Learning Integration Scale (e.g. better service as a result of large scale) Institutional factors

10. Tests of a Desirable technological change Technology lowers cost or enhances differentiation sustainablyTechnology shifts cost or uniqueness drivers even if imitatedPioneering the technological changeTechnological change improves overall industry structure So Technological change can also have opposite effects in favor of competitors!

11. Technology and industry structure rivalry Buyer power Threat of substitut es Supplier power Threat of new entrants

12. Technology and Industry attractive The dual role of technological change

13. Thank you for your attention!