Business Information System

1. Competitive profits A warring value is an gain over competitors gained by offering consumers greater value, either by promoter of lower prices or by providing greater benefits and attend that justifies high prices. Michael Porter identified two basic types of competitive value: address advantage differentiation advantage A competitive advantage exists when the profligate is able to deliver the homogeneous 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 squ are to create sea captain value for its customers and banner profits for itself. Resources and Capabilities According to the resource- mean(a)d view, in say to develop a competitive advantage the firm moldiness have resources and capabilities that are superior to those of its competitors. Without this superiority, the competitors simply coul d 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 soft.

The interest 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 king to hire its resources effectively. An example of a capability is the ability to come 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 in concert orchestrate its distinctive competencies. These competencies enable innovation, efficiency, quality, and customer responsiveness, all of which feces 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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