BSM 600 Study Guide - Midterm Guide: Value Chain, Customer Service, Quality Management

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BSM 600 Week 3
Competitive Advantage
Better than your competitors
oDirect rivals: Present in all product categories
oIndirect rivals: Not present in every market you’re present in; alternatives; not doing everything
you’re doing
oInvisible competition: haven’t entered the market yet but are a potential threat; difficult to track;
suppliers can tell you who these may be
Network is important: suppliers, customers
oMarket performance Indication of success Track those who are large in terms of profits
Have staying ability
oFirm I Firms who have a past record of having done well
oR&D Info about new markets
oBrand power Reputation, trust, loyalty
Get a sense of the resources of the organization; what have competitors done in the past? What patents do
they have? Gives you an idea of who can be a threat
Advantage
oBetter performance
oCapability for higher profit
o“My product works better” Unique, design Combination of different things
oCustomer service loyalty
oMarketing Creative, wider reach, need to do different things for different segments
oCheaper costs but quality doesn’t suffer
oValue chain Efficient processes
Look at external and internal factors
oExternal
Look for trends in the market
GoodPUB, tracking the market
Look at what competition is doing/what announcements they’re making
Take care of suppliers Gives you info about what you’re tracking is also what
competitors are tracking
Focus groups
oInternal
R&D Also seeks info from other departments, managers Others need to accept
those new ideas Collaborative effort across the organization
Flexibility to change, decentralized structure Info flow in the organization
Business consultants help you see your flaws
Employee training fosters company culture, develop new skills, motivation
History of experience/organization inertia ie not being able to change too much,
flexibility
Cost advantage Cheaper, lower prices is important, but need to have higher volumes, value chain
management, outsourcing but lack of control so it can be copied by others but that’s okay if it’s not the
core of your competency ie no new stuff happening with this/stable tech, quality management, negotiate
with suppliers
Differentiation advantage Product features, 1st new, higher prices, blue ocean strategy, combining
features across industries radically new products, management skills, brand, technology, take risks,
flexible
Cannot do both but can create a different brand/product line
How to Improve/Copy
People + culture
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