07-07-2012, 02:18 PM
COMPETETIVE ADVANTAGE AND COMPETENCY
COMPETETIVE ADVANTAGE.ppt (Size: 45.5 KB / Downloads: 30)
DEFINITION
MICHAEL PORTER, as defined competitive advantage as,
A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
COMPETITIVE STRATEGIES
MICHAEL PORTER suggested four “generic” business strategies that could be adopted in order to gain competitive advantage.
The differentiation and cost leadership strategies seek competitive advantage in a broad range of market.
The differentiation and cost focus strategies are adopted in a narrow market or industry.
COMPETENCY
Competency is the ability of an individual top perform a job properly.
Competency is sometimes thought of as being shown in action in a situation and context that might be different the next time a person has to act.
CONCLUSION:
Therefore, every firm has to produce the products which will compete the competitors by both cost and differentiation advantage.