Porter's Competitive Advantage

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Question.Competitive position is what gives organizations competitive advantage. How does the understanding of Porters Competitive forces help organizations gain favourable competive positions? Competitive positioning is about defining how you will differentiate your offering and create value for your market. It is about carving out a spot in the competitive landscape,putting your stake in the ground,and winning mindshare in the marketplace-being known for certain something(www.marketingmo.com). Competitive advantage is the favourable position an organization seeks inorder to be more profitable than its competitors .competitive advantage involveses communicating a greater perceived value to a target market than its competitors can provide.…show more content…
Government policy-the government can limit or even discourage entry tof new o industries by controls in issueing of trading licences,on air ander pollution standardssa,as well as and limitations on on access to raw materials.s The government can also grant monopolies .Indusries such as utilities are considered natural monopolies because it is believed more efficient to have one electric company provide power to a locality yhan to have many providers(www.quickmba.com).To restrain utilities from exploiting this advantage .government permits a monopoly ,but regulates the industry .For example road resurfacing in Zimbabwe .the tender to road surfacing may be granted through bidding,but once a tender is granted by the community ,a monopoly is created.prices of road surfacing are the reviewd.maykowlege of the model heps an organisatin lobby to the governmemt to institute stiff measres to deter the new entrants,for example Mukuyu Winery ,a Zimbabwean wine manufacturer can request the government to raise excise duty on alcohol when formulating the Fiscal policy so that players such as Robertson ,Nederburg and JC Leroux will enter the local market at a high price compared to the local brands Mukuyu santé and Symhony Rose.The ZimbabweanGovernment instituted stiff policy on flour ,which saw national Foods and Victoria Foods maintainin their competitive advantage in the flour business.In 2010 the Zimbabwean governed put a barrir on imported chickens such that Irvines…show more content…
From "How Competitive Forces Shape Strategy" by Michael E. Porter. Published by Harvard Business Review, 1979. Suppliers Suppliers can exert bargaining power on participants in an industry by raising prices or reducing the quality of purchased goods and services(Michael Porter).Powerful suppliers can thereby squeeze profitability out of an industry.Soft drink concentrate producers are powerful suppliers. The power of each important supplier group depends on a number of characteristics of its market situation and on the relative importance of its sales or purchases to the industry . A supplier group is powerful if It is dominated by a few companies and is more concentrated than

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