Professional Documents
Culture Documents
Nour Ouda
Salam El-Helw
Hadeel Garghon
Supervised by:
Dr. Nizar naim
Competitive advantage
Resources
Distinctive
Competencies
Capabilities
Cost advantage
Or
Differentiation advantage
Value
Creation
Cost advantage
Competitive
Advantage
sources
Differentiation
Advantage
Adapting to
local
market
differences
Exploiting
economies
of global
scale
Exploiting
economies
of global
scope
Tapping the
optimal
locations
for
activities
and
resources
Maximizing
knowledge
transfer
across
location
(a)
Increased
market
share.
(b)
Improved
price
realization.
(c)
Neutralizing
local
competitors.
Adapting
to local
market
differences
Cont,,
(a) Increased market share:
Offering standard products and services across countries
reduces the boundaries of the served market to only those
customers whose needs are uniform across countries.
Cont,,
in its industry?
(the father of
Differentiation
Cost Leadership
- A firm sets out to become the low cost producer in its industry.
- Note: a cost leader must achieve parity or at least proximity in
the bases of differentiation, even though it relies on cost
leadership for its CA.
-Note: if more than one company aim for cost leadership,
usually this is disastrous.