CREATING

COMPETITIVE
ADVANTAGE
GROUP 9
 OBJECTIVES
Discuss the need to understand
1 about Relation between
3
The need Sources of competitive
advantages
competitive advantage and
firm’s performance

Explain the problem of

2 sustainability of competitive
advantages
DEFINITIONS
OUR TEAM

COMPETITIVE
ADVANTAGE
An advantage over competitors gained by offering
consumers greater value, either through lower
prices or by providing more benefits that justify
higher prices.
 COMPETITIVE
ADVANTAGE
Competitive advantage is the distinctive edge that a
company possesses, enabling it to generate higher
revenues, attain better market positioning, and achieve
long-term success in its industry. This advantage can arise
from various factors, including superior products or
services, cost leadership, innovative processes, strong
brand recognition, and effective customer relationships.
DEFINITIONS
OUR TEAM

DYNAMIC
CAPABILITIES
is the capacity of an organization to purposefully
create, extend, or modify its resource base (Helfat
et al., 2007)
DYNAMIC
CAPABILITIES
There is still no consensus on the conceptualization of key
features of dynamic capabilities, although scholars in the
field express urgent need for a coherent theory and model
of dynamic capabilities (Barrales-Molina et al., 2013).
 AS THE FIELD EVOLVES, THEORETICAL
WORK IS CONVERGING AROUND TWO
MAIN TENETS OF THE DYNAMIC
CAPABILITIES VIEW:

01 dynamic capabilities contribute to

organizational performance

The value of dynamic capabilities is more

pronounced in environments characterized
by rapid technological change
02
DEFINITIONS
OUR TEAM

STRATEGIC MANAGEMENT

involves developing and implementing plans to help an

organization achieve its goals and objectives
RELATION BETWEEN COMPETITIVE
ADVANTAGE AND FIRM’S
PERFORMANCE
Porter states that competitive advantage grows fundamentally out of the value a firm is able to create for its
buyers that exceeds the firm’s cost of creating it (Porter, 1985). More recent research in strategic management
has shifted toward understanding the strategic mechanisms that can create competitive advantage and to
explain the firm-level mechanisms for achieving sustainable competitive advantage based mainly on the
framework of core competitive capabilities (Fiegenbaum and Thomas, 2004).
 RELATION BETWEEN COMPETITIVE
ADVANTAGE AND FIRM’S PERFORMANCE
 SOURCES OF COMPETITIVE
ADVANTAGES
A key issue for managers are sources, from which advantages of
enterprises managed by them result and sources, from which, new
competitive advantages may potentially result. This issue has been
discussed in the literature from the very introduction of the term of
“competitive advantage” to management sciences.
THE CHOSEN DEFINITIONS OF
DYNAMIC CAPABILITIES
 One may note modification of the approach to th
analysed issue as suggested in the science,
including temporariness of competitive
advantages. To put it simply, it is a matter of
response to a question, whether competitive
advantages can, generally, achieve the status of
THE PROBLEM OF SU “sustainable” or only “temporary” advantages
STAINABILITY OF CO
MPETITIVE ADVANT
AGES
 A FIRM CAN ACHIEVE SUSTAINABL
COMPETITIVE ADVANTAGE IF IT HA

01 valuable

THE PROBLEM OF SU 02 rare

STAINABILITY OF CO
MPETITIVE ADVANT
AGES
03 Inimitable and
non - substitutable resources
 Overall cost leadership.
BASIC COMPE The company works hard to achieve the
TITIVE STRAT lowest production and distribution costs.
EGIES
Differentiation.
The company concentrates on creating a
highly differentiated product line and
marketing program so that it comes across as
the class leader in the industry.

Focus.
The company focuses its efforts on serving a
few market segments well rather than going
after the whole market.
 ASSESSING COMPETITORS’
STRENGTHS & WEAKNESSES
Company normally learn about their competitors’
strengths and weaknesses through secondary data;
conduct marketing research with customers,
suppliers, and dealers; personal experience, and
word of mouth.

Conduct benchmarking = the process of

comparing the company’s products and
processes to those of competitors or leading
firms in other industries to find ways to
improve quality and performance.
6 WAYS TO GAIN COMPETITIVE
ADVANTAGE
Create a Corporate Culture that Attracts
1 the Best Talent 4 Clarify Your Strengths

Define Niches that are Under-servicedIn Establish Your Unique

2 fishing, there are two types of fish.
5
Value Proposition

Reward Behaviors that

Understand the DNA Footprint of
3 6 Support Corporate Mission
Your Ideal Customer
and Value
SELECTING COMPETITORS T
O ATTACK and AVOID

STRONG or WEAK
COMPETITORS

CLOSE or DISTANT
COMPETITORS

·GOOD” or “BAD”
COMPATITORS
GROUP 9
BLEZ GUEVARA
SHEINA MAE BACLAS
AUBREY ANN MATRIDO
CHARLES AYMAR DAQUINAN
JOHN LOYD DAYOT