#2 Identifying Competitive Advantage

This second chapter is explain why competitive advantages are typically temporary.Its also list and explain each of the 5 forces Model.Furthermore,its also compare porters three genetic strategies and describe the relationship between business process and value chain.This five forces model are #1:Buyer Power, #2:Supplier Power#3:Threat of substitutes products or services, #4:threats of new entrants and #5:Rivalry among existing companies.This Five Forces model can be easily know using above mind map.

#1:BUYER POWER,is a high when buyers have many choices of whom to buy  and Low  when their choices are few .This is to reduce buyer power and create competitive advantage in an organization to make it more attractive to buy from the company not from the competitors.Its is the best IT-based practices.

#2:SUPPLIER POWER,it will high when buyers have few choices of whom to buy from. It is low when their choices are many.It is best practices of IT to create competitive advantages. For example business to business market place-it is private exchange allow a single buyer to posts it needs and then open  the bidding to any supplier who would care bid. 

       suppliers >> Organization >>Customers

#3:THREAT OF SUBTITUTE PRODUCTS AND SERVICES,it will high when there are many alternatives to a products or service.Low when there are few alternatives from which to choose. It also idealy ,an organization would like to be on a market in  which there are few substitute of their product or services.

#4:THREAT OF NEW ENTRANTS,it will high when it is easy for new competitors to enter a market.It will low when there are significant entry barriers to entering a market.Its entry also will come as a barriers is a product or service feature that customer have come to expects from organizations and must offered by entering organization to compete and survive.

#5:RIVALRY AMONG EXISTENCE COMPETITORS,it will high when competition is fierce in market .And may low if when competition is more complacent  and best practices of IT.

chapter #2 will be continue next week,so Thats all for today! See ya.