Building Competitive Building Competitive

AdvantageAdvantage

Competitive Advantage Create a vision Mission Statement State the value proposition Create the business model Describe the core competencies &

competitive advantage Act

Vision Clarity Consistency Uniqueness Purposeful

We strive to preserve and improve life through the innovation of biomedical devices while supporting, training, and inspiring our employees so that individual ability and creativity is leased and rewarded. Our goal is to be the leader in our industry by 2006 and be widely known throughout the world.

Mission Statement Core values Customers / stakeholders Products Competitive Advantage Values provided to customer Markets

Our mission is to design and manufacture electronic devices that serve the needs of the aerospace industry on a timely basis and at reasonable prices.

Value Proposition Product Price Access Service Experience

Value Proposition

Product Price Access Service Experience

Product Wal-Mart Amazon Honda Disney World

Price Target Holiday Inn Olive Garden

Access Barnes & Noble Priceline Dell Starbucks

Service Toyota SW Airlines McDonald's

Experience Mercedes AOL Nordstrom

Primary Value

Seco

ndar

y V

alue

Business Model Customer selection Value proposition Differentiation Scope of product/activities Organizational design Value capture for profit Value for talent

Business Model (Dell)

Customer Corp, Govt, Ed, Indiv Value customized computer Differentiation direct sales, service Scope desktops, laptops, servers Organization divisional by customer seg Value capture focus on service, access Value for talent career opportunities

Business Model

American SW Airlines

CustomerWorld traveler U.S. Traveler

ValueProduct / Accessibility Price / Service

DifferentiationWide scope - goes almost anywhere

limited point-to-point flights

ScopeBroad: connects everywhere

Narrow:

OrganizationHub and Spoke High fixed cost

Point-to-point Lower, flexible costs

Value CaptureDominate hub city high occupancy

Value Talenthigh pilot salaries stock options

Core Competencies

Core competency of Google is the design and operation of a software search engine. It is the dominant online search engine. While starting as a search tool for finding information on diverse subjects, it has also become a tool for people searching for an online site selling a product of interest.

Sustainable Competitive Adv. High quality Toyota Service Starbucks Price Wal-Mart Mrkt Segment Dell Product Breadth Amazon Innovation Medtronic Intellectual Prop. MicroSoft