ipl-logo

Advantages Of Competitive Positioning

1306 Words6 Pages

“A competitive advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and services that justify similar or possibly higher prices”- (Cole Ehmke, M.S).

Competitive positioning is concerned with how an organisation, mostly a business varies its products to create a value for its market. It is always good to know your position, this being business associated and in one’s personal life. If you know your competitive position, it is then possible for you to make efficient goals or set effective operating procedures that will help improve business performance. A recent article (Understand your competitors) states that you can benefit by realising new …show more content…

It can also be used by individuals who want to assess themselves or their capabilities and it also offers a basis for improving performance. Although a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis rarely provides solutions, it can help you comprehend and identify factors affecting your business. An organisation which knows its weaknesses can develop goals and formulate strategies that will take advantage of its strengths while capitalising on the organisation’s opportunities. The other advantage of a SWOT analysis is that if you know you threats you can plan to deter …show more content…

This will, if not already causing havoc. No training of users and the level of user self-sufficiency is low. This is a weakness as it consumes time and time can be more precious than money. It takes time to make and think about money.
Opportunities are not always clear but they are always there. Part of the consultant (me)’s job specification is to develop and promote a telecommunications and IT use policy. This is an opportunity in a way that it may enhance business performance.

Threats include the theft of computer equipment, which is an investment because technology adds to competitive advantage. The corruption of files entered the network and there is usage of non-licenced software.

The second method which can be used to assess an organisation’s competitive position is the “Porter’s five forces” model. This is used to distinguish power, often in a supply chain and also to check the impact of new establishment on an organisation’s income. “With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness and avoid wrong steps”-(J. Manktelow & A.

Show More
Related

  • Trader Joe's Case

    1669 Words  | 7 Pages

    According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. TJ is Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the company’s strategy. Recommendations and

    Read More

  • United Airlines Market Segmentation

    1027 Words  | 5 Pages

    A SWOT analysis can be done for any company, product, place, industry, or person. They can serve as a precursor to any sort of company related action, such as exploring recognizing new initiatives, making decisions related to new policies, identifying possible areas for change and improvising. Answer: (b): SWOT analysis is performed to improve business operations by taking into account the Strength, weaknesses, Opportunity and Threats.

    Read More

  • Capsim Porter's Five Forces

    506 Words  | 3 Pages

    Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.

    Read More

  • Swot Analysis Of Caterpillar

    986 Words  | 4 Pages

    A SWOT analysis is a tool used by organisations to identify its internal strengths and weaknesses, but also the external opportunities and threats. Therefore, this allows the organisation to assess what can be used to aid in achieving their objectives, i.e., strengths and opportunities, as well as aspects that can be improved on or potential problems that can be faced, i.e., weaknesses and threats, as they pursue on achieving business objectives and/or decision making. Explained S.W.O.T. Analysis: a) Strengths Caterpillar Inc. holds a very strong brand image worldwide that directly associates it with high quality products that they provide. In 2014, Caterpillar ranked as the number one brand in heavy equipment followed by a strong competitor,

    Read More

  • Porter's Five Forces In The Supermarket Industry

    1484 Words  | 6 Pages

    Each of the forces is determined how competitive in that industry as well as the structure of the industry. Porter’s five forces factors are consists of competitive rivalry, the threat of new entrants, the threat of substitutes, bargaining power from

    Read More

  • Kmart Supply Chain Analysis

    5718 Words  | 23 Pages

    The Porter’s model was created by Michael Porter in 1979. It is used to understand the structure of the industry and level of competition in that industry. It specifies the effect of five forces on an organization which are Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of substitutes and Rivalry among existing competitors. The organization is less profitable if competitive forces are high. The model specifies where the actual power lies (Jurevicius, 2013).

    Read More

  • Costco's Competitive Strategies

    729 Words  | 3 Pages

    How does Porter’s five-force analysis provide insights as to the likely success of a given business strategy? Given the competitive dynamics of your current industry (your employer), which of Porter’s competitive strategies is likely to be most successful? For us specifically, I think are in a vulnerable position. However, the real estate that we own is hard to lose. There are threats of substitutes is high as our renters (shops like Wal-Mart and Ross) are facing constant pressure from online retailers.

    Read More

  • Porter's Five Forces Of Twitter

    903 Words  | 4 Pages

    This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.

    Read More

  • Walt Disney Porter's Five Forces Analysis

    1089 Words  | 5 Pages

    3 Porter’s Five-Forces Model Analysis Different factors can be combined together in a simple business model. This is known as Porter’s Five-Forces Model and competitive circumstances of an industry can be analyze through this model. These five forces are critical forces that they determine the attractiveness and competitiveness of an enterprise and have influence on a firm’s profitability in its industry. The five-forces analysis can not only show how Walt Disney company builds a sustainable competitive advantage in Entertainment-Diversified industry but also can seize business opportunities in future development.

    Read More

  • Competitive Advantage Of State Street Company

    1196 Words  | 5 Pages

    To do this it needs to have a competitive advantage over its its rivals. A competitive advantage is something a company does better than its rivals that gives it an advantage over its rival. Porter (1988) states that a firm performs many activities that can contribute to a firms relative cost position and create a basis for differentiation which can create a cost advantage that gives a firm a competitive advantage over its competitors. A company’s competitive advantage and competitive strategy are both interrelated. Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.

    Read More

  • Virgin Atlantic Competitor Analysis

    1025 Words  | 5 Pages

    The five forces of Porters framework are important for Virgin Atlantic to monitor in order for them to assess the attractiveness of the Porters five model is necessary to monitor this factor to continue in assessing the attractiveness of the industry and also to determine how to use the forces to gain competitive

    Read More

  • Swot Analysis Of Morrison

    1858 Words  | 8 Pages

    Executive Summary This report analyses Morrisons’ strategic developments since the beginning of 2000s till present time. Some key strategic directions are emphasized taking into account the impact on the business. Morrisons’ acquisition of Safeway, launch of e-commerce and vertical integration model of supply chain are discussed in detail. In addition, the grocers’ competitive advantage is identified as opposed to its big rivals, namely Asda, Tesco, and Sainsbury’s.

    Read More

  • Four Building Blocks Of Competitive Advantage

    1014 Words  | 5 Pages

    The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.

    Read More

  • Hup Seng Industry Analysis

    1304 Words  | 6 Pages

    Porter. This analysis is used to measure the level of competition of the company in same industry. Abundant of economic studies stated that different industries can survive at different profitability level, the difference is explained by industry structure ("Porter 's Five Forces," n.d.). In other words, this model identifies industry structure based on the varied profit margins between industries, to help the company determines corporate strategy ("Industry Analysis | Porter’s Five Forces | Competition," 2014). The objective in this analysis is to help managers determine profitability and attractiveness of an industry (Investopedia, n.d.).

    Read More

  • Competitive Advantages Of Mr Price

    835 Words  | 4 Pages

    Mr Price has a wide range of competitors such as H&M, Woolworths and Pick ‘n Pay. A competitive advantage describes how the business has benefits or strengths over its competitors in the market. By having this, the competitors don’t seem as a threat to the company. It’s used

    Read More

More about Advantages Of Competitive Positioning

Open Document