Chapter 2 : Identifying competitive Advantages

 COMPETITIVE ADVANTAGE VS FIRST MOVER ADVANTAGE

 

 

There are three tools used in industry to analyze and develop competitive advantage includes :-

Porter’s Five Forces Model

Supply Chain

 

Business-To-Business Marketplace

An internet-based service that brings together many buyers and sellers.

Two types of  (B2B) marketplace :

•   Private Exchange

A single buyer posts it needs and then opens the bidding to any supplier who would care.the lowest price will be choose.

• Reverse Auction

Supplier will offer their product and services at an increasingly price.customer will choose lower price.

 

 

Porter’s Three Generic Strategies

 

 

 

 

AirAsia ? let see what a compatitive advantages that AirAsia have. It is Asia’s largest low fare , no frills airline.AirAsia implement fully ticketless travel and unassigned seats. AirAsia has a crew productivity level that is triple that of Malaysia Airline (MAS)

AirAsia has applied cost leadership strategy through the slogan “now everyone can fly”.

Based on porter’s five forces model , AirAsia buyer power is low because buyer don’t have much choices because AirAsia is the first introduce the lower fare.Now , there have many competitor such as MAS , Malindo Air , Rayani Air , FireFly and so on.so that Buyer Power increase slowly since they (customer) can choose from that variation of airline.

AirAsia supplier power is high and now it turn to decrease because customer have many choices to purchase from any supplier.