Strategies for Competitive Advantage

Based on the previous article Competitive Advantage and Strategic Information System. I will explain you about Strategies for Competitive Advantage Organization continuously, develop a strategy to fight five (5) competitive strength (five competitive forces) belongs Porter. In this section, we described 5 strategies that can be used by organizations to achieve competitive advantage of competitors. The fifth strategy is as follows:

  1. Cost leadership strategy. If an organization has this strategy, then they will produce the products / services at the lowest possible cost. For example, the system automatically supplies replacement belongs to Walmart, where these systems allow Walmart to reduce inventory storage needs. The impact of its use, the room in Walmart stores, only used for displaying goods sold, not to be stored, thereby reducing inventory costs.
  2. Differentiation strategy. In this strategy, the organization offers a wide variety of products / services, or features of a product, in excess of that offered by competitors. For example, conducted by Dell, where the company has a different strategy with competitors through mass-customization in the market share of the PC (Personal Computer).
  3. Innovation strategy. In this strategy the organization emphasizes the discovery of new product / service and its order can always outperform its competitors. For example, a pioneer launch of the navigating bridge teller machine (ATM) by Citibank. Due to the presence of these ATM machines, Citibank has an advantage compared to its competitors, at the time.
  4. Operational strategy effectiveness. Increased internal business processes, so that the company can run with better activity compared with its competitors. For example, an increase in quality, productivity, employee and customer satisfaction.
  5. Customer-orientation strategy. This strategy focuses on the customer and how to make the customer happy. Highly effective web-based system used in this strategy, by using personalization features.

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