SSP Generic Building Blocks of Competitive Advantage

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  1. 4 Generic factors build competitive advantage
    • better differentiate products
    • efficient in reducing costs
    • 1. Efficiency
    • 2. Quality
    • 3. Innovation
    • 4. Customer Responsiveness
  2. Efficiency
    • measured by cost of inputs required to produce a given output
    • the more efficient, the lower the cost of inputs (low -cost competitive advantage)
    • utilizing inputs in most productive way
    • high employee & capital productivity = low cost of production
  3. Quality
    • high quality products create brand-name reputation
    • >allow charge a higher price
    • Higher product quality result greater efficiency
    • >less employee time fixing defective products
    • >higher employee productivity
    • >lower unit costs
  4. Innovation
    • Process innovation if new about operation
    • Product innovation if new about product
    • Innovation include advances in
    • >kind of product
    • >production process
    • >mgt system
    • >organizational structure
    • >strategies developed
    • Successful innovation give sth unique
    • >allows to differentiate & charge premium price
    • >allows to reduce unit costs
  5. Customer Responsiveness
    • give customer exactly what they want when they want
    • identify & satisfy customer needs
    • improve efficiency of production process and quality of product
    • develop new product have new features
    • customize goods to unique demand
    • reduce customer response time/ order lead time
    • >can charge a higher price
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SSP Generic Building Blocks of Competitive Advantage
2014-01-13 13:56:55

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