Chapter 3.8, Problem 3.7ARQ

Explanation of Solution

Eight principles of competitive advantage:

Eight principles of competitive advantage have been categorized into product implementations and process implementations.

Applications:

Product Implementations:

• Create new products or services
  • To offer new products or services to the customer this is better than the competitor’s product.
• Enhancing products or services
  • Improving the currently offering products by implementing the upcoming ideas.
• Differentiating products or services
  • Making the products stand in the market by implementing upcoming ideas.

Process Implementations:

• Lock in customers and buyers
  • Holding the customers and buyers to buy their products by providing good customer service and fulfilling the wishes and needs of the customer
• Lock in suppliers
  • Holding the suppliers on their side makes them always available and ready to help.
• Raising the barriers to market entry
  • Making some barriers, this will create a difficulty in startup business.
• Establishing alliances
  • Making tie up other business partners will help them succeed in their business.
• Cost reduction
  • Reducing the rate of the product will make them offer products or service at a cheaper rate.

Examples:

Product Implementations:

• Create new products or services
  • The bookstore can achieve this strategy by tracking the books, which are offered to the student by using the information system...