STRATEGIES FOR CREATING AND SUSTAINING COMPETITIVE ADVANTAGE
STRATEGIES FOR CREATING AND
SUSTAINING COMPETITIVE ADVANTAGE
Thomas Friedman (2005)
Globalization 1.0 (1492
Globalization 2.0 (1800
Globalization of the Company
The Golden Arches Theory..Multinational company
Globalization 3.0 (2000
now)
Globalization of the Individual
The world is on the flat screen
The Message Revolution
The price of global communication
1800)
Globalization of the Country
THE ADVANTAGES OF PIONEER
HOW NEW IS NEW ?
New-to-the-world products : true innovations that are new to the firm and create an entirely new market (10 percent)
New product lines : a product category that is new for the company introducing it, but not new to customers in the target market because of the existence of one or more competitive brands (20 percent)
Additions to existing product lines : established product line. (26 percent)
Improvements in or revisions of existing products : items providing improved performance or greater perceived value brought out to replace existing products. (26 percent)
Repositionings : existing products that are targeted at new application and new market segments (7 percent)
Cost reductions : product modifications providing similar performance at lower cost (11 percent)
1. First choice of market segments and positions : the pioneer has the opportunity to develop a product offering with attributes most important to the largest segment of customers or to promote the importance of attributes that favor its brand.
2. The pioneer defines the rules of the game : product quality, price, distribution, warranties, postsale service, and promotional appeals and budgets set standards that subsequent competitors must meet or beat.
3. Distribution advantages : The pioneer has the most options in designing a distribution channel to bring the new product to market.
4. Economies of scale and experience : Being first means that pioneer can gain accumulated volume and experience and thereby lower
SUSTAINING COMPETITIVE ADVANTAGE
Thomas Friedman (2005)
Globalization 1.0 (1492
Globalization 2.0 (1800
Globalization of the Company
The Golden Arches Theory..Multinational company
Globalization 3.0 (2000
now)
Globalization of the Individual
The world is on the flat screen
The Message Revolution
The price of global communication
1800)
Globalization of the Country
THE ADVANTAGES OF PIONEER
HOW NEW IS NEW ?
New-to-the-world products : true innovations that are new to the firm and create an entirely new market (10 percent)
New product lines : a product category that is new for the company introducing it, but not new to customers in the target market because of the existence of one or more competitive brands (20 percent)
Additions to existing product lines : established product line. (26 percent)
Improvements in or revisions of existing products : items providing improved performance or greater perceived value brought out to replace existing products. (26 percent)
Repositionings : existing products that are targeted at new application and new market segments (7 percent)
Cost reductions : product modifications providing similar performance at lower cost (11 percent)
1. First choice of market segments and positions : the pioneer has the opportunity to develop a product offering with attributes most important to the largest segment of customers or to promote the importance of attributes that favor its brand.
2. The pioneer defines the rules of the game : product quality, price, distribution, warranties, postsale service, and promotional appeals and budgets set standards that subsequent competitors must meet or beat.
3. Distribution advantages : The pioneer has the most options in designing a distribution channel to bring the new product to market.
4. Economies of scale and experience : Being first means that pioneer can gain accumulated volume and experience and thereby lower