Creating competitive advantage
Competitive Advantage are traits and capabilities that
are unique or differentiating from your competitors.
Strategy is about creating these competitive advantages,
and as a result, creating a business model that put you
at the best competitive position.
Strategy
According to Michael Porter is about being different. It
means a unique mix of value is delivered by difference
set of purposely chooses activities. In other
words,
strategy is creating a competitive
position that differentiating yourself to your
competitor and adding value through a mix of
activities.
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Competitive Advantage
Gap
(Current core) |
GAP
are things that create differentiable from
your competitor now. They are the "GAP" between your current
execution and your competitors (etc.. new and
better sales and marketing programs, better
pricing or advanced service capabilities),
but your competitors can duplicate them
easily. |
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Competitive
Advantage Period
(Future core) |
CAP
are things that allow you to extend your
short-term advantages over time so that you
are lengthening the Competitive Advantage
Period. For example, market segment share, brand power, channel
dominance or intellectual properties. |
Creating competitive advantage