Question

Select the four common tools managers use to analyze competitive intelligence and develop competitive advantages. a. The three generic strategies b. Value chain analysis c. Customer loyalty analysis d. Competitive chain strategies e. SWOT Analysis f. Porter's Vision Strategy g. The Five Forces Model

Answer 1

Answer:

a. The three generic strategies

b. Value chain analysis

e. SWOT Analysis

g. The Five Forces Model

Explanation:

The four tools commonly used by managers to develop competitive advantage are; The three generic strategies, value chain analysis, SWOT Analysis and The Five Forces Model.

• The three generic strategies are used to determine if the organization intends to compete from a position of cost leadership (offering low cost products), product differentiation (offering unique, high quality products) or choosing a specific niche to serve.

• When managers use the SWOT analysis, they analyse the strengths and weaknesses of their organization as well as those of competitors, and also look out for opportunities to improve, and threats to be avoided.

• Managers use the Value chain analysis, to determine how to reduce cost, improve profitability and increase value for customers, by monitoring the various processes involved, in production and delivery of goods, as well as after sale customer service.

• Porter's five forces model is used by managers to determine the extent and strength of competition in an industry and what industry to enter or avoid. It also provides information on the bargaining power of buyers and suppliers in the market and the threat of substitute products to the organization's products.

Answer 2

Answer:

The four common tools managers use to analyze competitive intelligence and develop competitive advantages are:

a. The three generic strategies

b. Value chain analysis

e. SWOT Analysis

g. The Five Forces Model

Explanation:

The four common tools managers use to analyze competitive intelligence and develop competitive advantages are:

a. The three generic strategies: The generic strategies according to Porter are:

- Cost leadership: This is when the firm chooses to fight the competition by producing at a lower cost

- Differentiation: This is when the firm chooses to combat the competition by producing unique products of higher quality.

- Focus - This is when the firm is focusing on one or a few segments (rather than all) to compete either by cost reduction (cost focus) or by providing unique products (differentiation focus).

b. Value Chain Analysis: This is a strategic attempt to gain competitive advantage via analysis of internal firm activities in the bid to recognize the 'most valuable activities' in respect to which generic strategy it is pursuing (i.e. which activities are the source(s) of cost or differentiation advantage)

e. SWOT Analysis: This strategic tool for competitive analysis looks at both internal (within the company) and external factors (The business environment). The S stands for strength, which looks at the internal operational strengths of the company in comparison to its competitors. W stands for weakness, which looks at the operational lapses of the company. O stands for opportunities in the external business environment; and T stands for Threats which looks at the external factors that will affect the company.

g. The Five Forces Model: This is a strategic model that is used for the identification and analysis of the structure, strength and weaknesses of an industry.

Porter's five forces includes the following:

1. Competition in the industry

2. Potential of new entrants into the industry

3. Power of suppliers

4. Power of customers  

5. Threat of substitute products