Chapter 2 Indentifying Competitive Advantage

Identifying Competitive Advantages.

• A competitive advantage is a product or service that an organization's customers place a greater value on than similar offerings from a competitor.
• First-Mover Advantage occurs when an organization can significantly impact its market by being the first to market with a competitive advantage.
• It is important while developing competitive advantage to pay attention to their competition by environmental scanning. Environmental Scanning is the acquisition and analysis of events and trends in the environment external to an organization.
• Organizations use 3 common tools to analyze and develop competitive advantages: 

1. Value Change Analysis
2. Five Force Model
3. Three Generic Strategies