IT IT and IT !!!

Assalamualaikum hoyeeehhhh!

Hi everyone! :)..Today I want to continue what i said about last entry about Biz Driven Techno.Okeyyy..What is competitive advantages that must the organization create to survive and thrive??For me it is very easy,your product must be different with others company product's with that have greater value which mean in term of quality,price and others.Lets say that your company is a first mover advantage so you can raise the price of your products because only your company have the product..So it is the benefit to and advantage to your organization! ;)...The three common tools are used to analyze and develop competitive advantages which is :

 THE FIVE FORCES MODEL-EVALUATING BIZ SEGMENTS

This Five Forces Model includes buyer power,supplier power,threat of substitute products or services,threat of new entrants and rivalry among existing competitors.  

Buyer power is assessed by analyzing the ability of buyers to directly impact the price they are willing to pay for an item.For example if buyer power is high they can force a company and its competitors to compete on price which it can make the price is go down.To reduce buyer power,the company must create a competitive advantage that is loyalty program.It is to reward customer base don the amount of biz that they do.

What is the switching cost??The best example is switching doc is difficult becoz new doc will not have the patient's history and the relationship with the patient.So,to describe what is the switching cost it is costs that can make customer reluctant to switch to another product or service.:)

Supplier power is the ability of the suppliers to directly impact the price they are charging for supplies includes the materials,employees and services..If supplier power is high the supplier can directly influence industry by charging higher price,limit quality or services and shifting costs to industry participants.When supplier power is high,buyers loss revenue becoz they cannot pass on the raw material price increases to their customers..

Threats of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.For example,there are many substitute products in the airlines industry,apple products and etc...

Threat of new entrants is high when it is easy for new competitors to enter a market and lower when there are significant entry barriers to entering a market...For example a new bank must offer its customers an array of IT-enable services..

THE THREE GENERIC STRATEGIES-CREATING A BIZ FOCUS

BROAD COST LEADERSHIP-big segmentation..the product is focus to all consumer whether their salary is high or low for example the convenience goods.

DIFFERENTIATION-the company target at sentence segmentation..They are always target to the customer that have high income to buy their product.The company also produce the product in the small quantities to maintain their quality of product for example like BMW,AUDI,BUGATTI car's and etc...

FOCUSED STRATEGY-the company focus at the niche market in the broad market itself.It can make the company use the high cost or lower cost.For example,in the past KFC only target to the adults to buy their products which is fast food.Now they increase their production with also focus to the child segment becoz they know the child will influence their parents to buy the fast food.So,they use the strategy to expand their biz.

VALUE CHAIN ANALYSIS-TARGETTING BIZ PROCESSES

Value Creation-a biz process is a standardized set of activities that accomplish a specific task,such as processing a customer's order...Value chain approach views an organization as a series of processes,each of hich adds value to the product or service for each customer.

I think this is the entry that is not understood by most people .. haha...Tq guys!! tadaaaa :(