Competitive Advantages in IT

Hye guys,

Remember my last entry on Tuesday?

That’s about what I have study in Chapter 1.

So, in Chapter 2 I get more knowledge about IT.

That is Competitive Advantages.

Competitive advantage – a product or service that an organization’s customers place a greater value on than similar offerings from a competitor.

From my understanding, it also something that we have and other’s don’t have

frosting pictures

and something that attract and retain customers.

 *please ignore this two nonsense picture* =__="

First-mover advantage – occurs when an organization can significantly impact its market share by being first to market with a competitive advantage.

example of first mover advantages

Then, in organizations use 3 common tools to analyze and develop competitive advantages:

1)      The Five Forces Model

Example of Airline Industry:

Buyer power: high as customers have many choices

Supplier power: high as there are limited plane and engine manufacturers to choose from and unionised workforces squeeze the airline’s profitability

Threat of substitute products or services: high as there are numerous transportation alternatives

Threat of New Entrants: high as new airlines are continuously entering the market

Rivalry among existing competitors: high –for this reason airlines are forced to compete on price

2)      The Three Generic Strategies

example

3)      Value Chain

•          Business process – a standardized set of activities that accomplish a specific task, such as processing a customer’s order

•          Value chain – views an organization as a series of processes, each of which adds value to the product or service for each customer

continue on Chapter 3.... :)