COMPETITIVE STRATEGY AND ALLIANCE

 The business world is a game of competition, that’s why every company/organization will do anything to
be the leading brand/front liner in the industry. That’s where the COMPETITIVE STRATEGY enters.

COMPETITIVE STRATEGY

 You will encounter the phrase “HIGH RISK, HIGH REWARD” you need to invest/offer something new,
fresh to your customer/s that your competitor is not offering, if nag click you’re going to harvest the
rewards or the fruits in something you invested.
 IS YOUR GAME PLAN
 THIS IS YOUR WAY TO OUTCAST OR EXCEED YOUR COMPETITORS
 AND ACHIEVE YOUR GOAL WHICH IS TO BE THE FRONT LINER IN THE INDUSTRY

DETERMINANTS OF COMPETITIVE PRIORITIES

1. FIRMS AVAILABLE RESOURCES

 Are very important in business, because this where you get all your raw materials that you’ll be
needing for you to be able make your products and perform your services.
 That’s why you need to have a good relationship with your supplier especially if you’re outsourcing.
 Without supplier-no resources-no products/services-no profit, so how can you compete?
2. BUSINESS ENVIRONMENT
 The most important aspects of any business
 Divided into 2 factors (Internal and External)

COMPETITIVE STRATEGIES HINGE ON 2 IMPORTANT ISSUES:

1. PRODUCT COST
 A strategy where they lowering production cost, labor cost, operational cost for them to be able offer
quality products with a affordable price/ price lower than its competitor

Example: PAYLESS they try to limit the number of their employee in order to cut operational cost

 By this cost cutting it allows them to offer products that are quality wise in affordable price.
2. PRODUCT DIFFERENTATION
 Organizations attempts to distinguish its products and services from the competitors.
 Goal here is to offer unique products to the consumer
 Focuses on innovation to keep competitive outcasted.