Hah, this is really surprising!!!!

                Hello~ heh heh heh..why did i put 'hah,this is really suprising'??? actually, i did forget about something that i should post in the previous entry. ok for this entry , actually this is the continuity entry for ' Let say about Information Technology' . huhu..okays, here, now i confess that my class actually had finished chapter 1 and 2. so what i wanna post in this entry is focusing on chapter 2 , that i forget to post along with previous entry. so, i am

okay, so just forget about it, what is chapter 2 is about????

Anyone who like to answer this raise up your hand ?? haha

chapter 2 is 

Identifying Competitive Advantages

How actually an organization wanna survive and stay for a long time in the market??

The answer is an organization must create a competitive advantage. 

Competitive Advantage is

 a product or services that organization's customers value more highly than similar offering from a competitor

so , an organization which come up with their competitive advantage  or being the first -mover advantage can have significantly impact its market share.

Organizations watch their competition through environmental scanning. So what is actually environment scanning???

Environmental scanning

 is

 the acquisition and analysis of events and trends in the environment external to an organization

Three common tools used in industry to analyze and develop competitive advantages include:

–

~Porter’s Five Forces Model

~Porter’s three generic strategies

~Value chains

 There are 5 forces Model that shape an organization to compete among them. which are:

                                                            Buyer power

     high when buyers have many choices of whom to buy from

low when their choices are few loyalty programs

Loyalty programs 

is

 reward customers based on the amount of business they do with a particular organization

                                                           

  Supplier Power

high when buyers have few choices of whom to buy from

low when their choices are many

Supply chain 

is

 consists of all parties involved, directly or indirectly, in the procurement of a product or raw 

material

Organizations that are buying goods and services in the supply chain can create a competitive

advantage by locating alternative supply sources (decreasing supplier power) through B to B 

marketplaces

Business-to-Business (B to B) marketplace

 is

 an Internet-based service which brings together 

many buyers and sellers

Two types of Business-to-Business (B to B) marketplaces

Private exchange

 is

 a single buyer posts its needs and then opens the bidding to any supplier who would care to bid

Reverse auction

 

is 

 An  format in which increasingly lower bids are solicited from organizations willing to supply the 

desired product or service at an increasingly lower price

Threat of Substitute Products or Services

high when there are many alternatives to a product or service

low when there are few alternatives from which to choose

Switching costs

 

is

 costs that can make customers reluctant to switch to another product or service

Threat of New Entrants

high when it is easy for new competitors to enter a market

low when there are significant entry barriers to entering a market

Entry barrier

 is

 a product or service feature that customers have come to expect from organizations in a 

particular industry and must be offered by an entering organization to compete and survive

 Rivalry among Existing Competitors

high when competition is fierce in a market

low when competition is more complacent

Although competition is always more intense in some industries than in others, the overall trend 

is toward increased competition in just about every industry

THE THREE GENERIC STRATEGIES 

actually is

 CREATING A BUSINESS FOCUS 

Organizations typically follow one of Porter’s three generic strategies when entering a new 

market

Broad cost leadership

Broad differentiation

Focused strategy

VALUE CHAINS

 is

TARGETING BUSINESS PROCESSES

Once an organization chooses its strategy, 

it can use tools such as the value chain to determine the success or failure of its chosen 

strategy

Business process 

is a

  standardized set of activities that accomplish a specific task, such as processing a 

customer’s order

Value chain

 is a

 views an organization as a chain, or series, or processes, each of which adds value to the 

product or service for each customer

I hope that you can understood what i am saying here. Have a nice day guys!!!