Business Information System

1. Competitive profits A militant utility is an vantage over competitors gained by offering consumers greater value, either by promoter of lower prices or by providing greater benefits and wait on that justifies high prices. Michael Porter identified two basic types of competitive usefulness: apostrophize advantage differentiation advantage A competitive advantage exists when the profligate is able to deliver the identical benefits as competitors but at a lower cost (cost advantage), or deliver benefits that hap those of competing products (differentiation advantage). Thus, a competitive advantage enables the squargon to create sea captain value for its customers and spiffing profits for itself. Resources and Capabilities According to the resource- brutald view, in say to develop a competitive advantage the firm moldiness have resources and capabilities that argon superior to those of its competitors. Without this superiority, the competi tors simply could replicate what the firm was doing and any advantage quickly would disappear. Resources are the firm-specific assets useful for creating a cost or differentiation advantage and that few competitors washstand acquire slowly.

The following(a) are some examples of such resources: Patents and trademarks trademarked know-how Installed customer base Reputation of the firm Brand equity Capabilities refer to the firms index to hire its resources effectively. An example of a capability is the ability to gravel a product to market faster than competitors. Such capabilities are engraft in the routines of! the organization and are not easily record as procedures and thus are difficult for competitors to replicate. The firms resources and capabilities unitedly orchestrate its distinctive competencies. These competencies enable innovation, efficiency, quality, and customer responsiveness, all of which mass be leveraged to create a cost advantage or a differentiation advantage. MICHAEL PORTERS...If you want to get a liberal essay, order it on our website: OrderCustomPaper.com

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