Viena Tiesse Sacayanan
First Reporter
Christian Kaiser Cabatania
Fourth Reporter
REPORTERS
TOPIC 5 – COMPETITIVE ADVANTAGE
Aira Cargo
Third Reporter
Randy Mac Lani
Second Reporter
1
CONTENT OF OUR
PRESENTATION
The following topics:
WHAT IS COMPETITIVE ADVANTAGE?
IMPORTANCE COMPETITIVE ADVANTAGE
SUSTAINABLE COMPETATIVE ADVANTAGE
FORMULA FOR A COMPETATIVE ADVANTAGE
EXAMPLES OF COMPETITIVE ADVANTAGE
TWO MAIN TYPES OF COMPETITIVE
ADVANTAGE
TOPIC 5 – COMPETITIVE ADVANTAGE 2
First Reporter
I’m Viena Tiesse Sacayanan
WHAT IS COMPETITIVE
ADVANTAGE?
IMPORTANCE COMPETITIVE
ADVANTAGE
TWO MAIN TYPES OF
COMPETITIVE ADVANTAGE
TOPIC 5 – COMPETITIVE ADVANTAGE
Competitive advantage is anything that gives a company
an edge over its competitors, helping it attract more
customers and grow its market share.
Competitive Advantage
A competitive advantage is what sets a business apart
from its competitors. It is essential for a business to
succeed, whether it’s by ensuring higher margins,
attracting more customers, or achieving greater brand
loyalty among existing customers.
IMPORTANCE OF COMPETATIVE ADVANTAGES
For Example: A car owner
will buy gasoline from a gas
s t a t i o n t h a t i s 5 c e n t s
cheaper than other stations
in the area. For imperfect
substitutes, like Pepsi vs.
Coke, higher margins for
the lowest-cost producers
c a n e v e n t u a l l y b r i n g
superior returns.
Apple
Amazon is an example of a
c o m p a n y f o c u s e d o n
building and maintaining a
comparative advantage. The
e-commerce platform has a
level of scale and efficiency
that is difficult for retail
competitors to replicate,
a l l o w i n g i t t o r i s e t o
prominence largely through
price competition.
Whole Foods Market
Comparative Advantage
A firm's ability to produce
a good or service more
e f f i c i e n t l y t h a n i t s
competitors, which leads to
greater profit margins,
c r e a t e s a c o m p a r a t i v e
a d v a n t a g e . R a t i o n a l
consumers will choose the
cheaper of any two perfect
substitutes offered.
Walmart
famous for creating
innovative products,
such as the iPhone, and
supporting its market
leadership with savvy
marketing campaigns to
build an elite brand
Apple
Starbucks business
strategy can be classified
as product differentiation.
Accordingly, the coffee
chain giant focuses on the
quality of its products and
customers pay premium
prices for high quality
Differential Advantage
Differential Advantage
is when a firm's products
or services differ from its
competitors' offerings and
a r e s e e n a s s u p e r i o r .
A d v a n c e d t e c h n o l o g y ,
patent-protected products
o r p r o c e s s e s , s u p e r i o r
p e r s o n n e l , a n d s t r o n g
b r a n d i d e n t i t y a r e a l l
d r i v e r s o f d i f f e r e n t i a l
advantage.
Walmart
What are Sustainable Competitive
Advantages?
Sustainable competitive advantages are a set of
assets, characteristics, or capabilities that allow
an organization to meet its customer needs better
than its competition can. Sustainable competitive
advantages are difficult to duplicate or replicate.
What are we best at in our
market?
Your competitive advantage is what you, your
company, or your department does better than
anyone else. The sustainable part refers to your ability
to continue doing those things long-term. And yes,
you can have more than one advantage, and you can
also develop advantages. However, you don’t have to
possess them all now
Sustainable Competitive Advantages
TWO TRAITS OF SUSTAINABLE
COMPETITIVE ADVANTAGE
UNIQUETO
YOUR
ORGANIZATIO
N
VALUABLE TO
YOU CLIENTS
Sustainable Competitive Advantages are organizational
strengths unique to your organization. These are the
strengths that set you apart from your competition. It’s what
you do well and is distinctly valuable in your market.
THEY ARE UNIQUE TO YOUR ORGANIZATION
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THEY ARE VALUABLE TO YOUR CLIENTS
Competitive Advantages are traits or strengths important to
your clients. If the strength you’ve identified is essential to
you but not crucial to your client, it’s not a sustainable
competitive advantage. A competitive advantage is a
strength or reason your clients choose you over your
competition. It must have value to your customer!
WHAT ISN’T SUSTAINABLE
COMPETITIVE ADVANTAGE?
We see organizations incorrectly identify competitive advantages all the
time. It happens, but here are a few quick ways to know what is truly
an advantage.
Often starting with what something isn’t is easiest. Your
competitive advantage is not a list of your strengths.
Strengths can become competitive advantages, but they
are not just a list of all your strengths.
Competitive advantages are not a list of your
strengths
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They can’t be created easily
Competitive advantages, by definition, are not easy to
create or replicate. If they’re easily created or copied, they
might be growth opportunities instead. Sustainable
competitive advantages are long(er) term in nature,
meaning it takes time for a competitor to replicate it.
They are also not competitive
advantages of your competitors
We see this one common mistake again and again in
identifying competitive advantages – a competitive
advantage is not a strength you have because your
competition also has it. Strengths that keep you
competitive in your market are essential but are considered
table-stakes.
INSTRUCTION:
In 30-second challenge, determine if you know your
competitive advantage. I meet you at one of the
numerous local networking events, and you introduce
yourself.
“Hi, I’m Bob Jones with ABC Company.”
“Hi, Bob. Nice to meet you.”
“What is your company best at?”
.
Sustainable Competitive Advantage Challenge
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Why Do You Need to
Identify Your
Sustainable
Competitive
Advantages?
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Competitive advantages helps you build a better, more
thoughtful growth strategy. As part of our growth strategy series,
understanding your competitive advantages helps answer the
question, “How do you win?”. You need to know what your
organization is best at to help build a thoughtful growth strategy.
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Why Do You Need to Identify Your Sustainable
Competitive Advantages?
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j
Formula for a Competitive
Advantage
A statement that explains what your company is best at.
Your
business
name.
+ What you
are best at + Why
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is best at
developing
precision
engines and
power trains
because its
products are the
leaders in
reliability and
technological
advancement
BUSINESS NAME.
+ WHAT YOU ARE
BEST AT
+ Why
HONDA
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Customer satisfaction
is best at
productizing
the yoga
experience and
practice
because it is
packaged for
franchising
BUSINESS NAME.
+ WHAT YOU ARE
BEST AT
+ Why
Bikram Yoga
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is best at
optimizing
searches for any
type of
information
because it
continues to
innovate and
push technology
past what was
thought possible
BUSINESS NAME.
+ WHAT YOU ARE
BEST AT
+ Why
Identify Strengths
From the strengths section in your SWOT,
identify your most valuable strengths.
IDENTIFY YOUR COMPETITIVE ADVANTAGES
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IDENTIFY YOUR COMPETITIVE ADVANTAGES
Identify Customer Wants/Needs
From your customer research or customer
analysis, identify your customer’s top wants and
needs that you can solve.
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IDENTIFY YOUR COMPETITIVE ADVANTAGES
Find the Overlap
From your list of customer strengths, find the overlap
between strengths you possess that provide value or solve
your customer needs.
Axe the strengths your competitors also
possess
Sustainable competitive advantages
must be unique. If your competitor also
has it, it’s not a competitive advantage. It’s
a table stake.
IDENTIFY YOUR COMPETITIVE ADVANTAGES
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LUXURY CLOTHING BRAND
They are best in
genuine global
reference for fashion
and accessories, and a
benchmark for a
modern, innovative
business.
Because of its
craftsmanship and
top-quality
materials, as with
any luxury brand.
GUCCI
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Best for
revolutionizing
the women's
fashion industry.
Because each of
Dior's collections
evoke sensuality
through their
intricate
embroidery and
signature motifs.
DIOR
LUXURY CLOTHING BRAND
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Best in constantly
assessing and
reacting to the
environment in a
matter of weeks.
Because its ability to
keep up with rapidly
changing fashion
trends and showcase
it in its collections
with very little delay.
ZARA
LUXURY CLOTHING BRAND
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Best in its brand
identity, brand value,
innovation,
pioneering in
technology, research
focus, and top-quality
customer experience.
Because Apple stands
out for its high degree
of differentiation and
continued
diversification across
its hardware, software
and services portfolio.
APPLE
SMARTPHONE BRAND
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Best specializes in the
production of a wide
variety of consumer
and industry
electronics, including
appliances, digital
media devices,
semiconductors,
memory chips, and
integrated systems. .
Because It offers
some of the best
trade-in values in
the mobile industry,
allowing many of us
to upgrade to newer
devices more often
than we would if
choosing a different
brand.
SAMSUNG
SMARTPHONE BRAND
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Best incredibly
fine stroke
width in a
variety of the
ball diameters.
Because It is ideal
for fine writing and
drawing. The bio-
polymer ink
prevents feathering
and provides the
smoothest writing
experience every
time
G-TECH
PEN BRAND
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Best with its most
incredible option
if you want the
finest
photography,
build quality, and
smartphone
design.
Because they are
known for their
outstanding
camera setups
and specifications
and, for most of
the part, it is true.
VIVO
SMARTPHONE BRAND
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Best pen for the job.
It dries quickly, a
low-viscosity pen,
and this pen’s ink is
water-resistant also
fade-resistant.
Because point
tip of finetech
produces clear
and precise
lines.
DONG-A
FINE TECH
PEN BRAND
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The Jetstream writes
smoothly with minimal
pressure against the page
and doesn't bleed through
the paper or smudge, and
its rounded barrel is
comfortable to hold while
freewriting over long
periods of time
Because The Uni
Jetstream Pen is good for
writing since it features
fast-drying ink and offers
a comfortable grip to
make you ready for any
extended period of
writing. It is refillable
and retractable which
most users loved. product
nation.
UNI JETSTREAM
PEN
PEN BRAND
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The Jetstream writes
smoothly with minimal
pressure against the page
and doesn't bleed through
the paper or smudge, and
its rounded barrel is
comfortable to hold while
freewriting over long
periods of time
Because The Uni
Jetstream Pen is good for
writing since it features
fast-drying ink and offers
a comfortable grip to
make you ready for any
extended period of
writing. It is refillable
and retractable which
most users loved. product
nation.
UNI JETSTREAM
PEN
PEN BRAND