COMPETITIVE ADVANTAGE IN BUSINESS ANALYTICS.pptx

COMPETITIVE ADVANTAGE IN BUSINESS ANALYTICS UNIT 1

1. What is Competitive Advantage? Competitive advantage refers to the ways that a company can produce goods or deliver services better than its competitors. It allows a company to achieve superior margins and generate value for the company and its shareholders. A competitive advantage is something that cannot be easily replicated and is exclusive to a company or business. This value is created internally and is what sets the business apart from its competition.

2. Strategy for Competitive Advantage Companies that make plans that generate successful outcomes are winners in the marketplace. Companies that do not effectively plan tend to be losers in the marketplace. Planning is a critical part of running any business. If it is done right, it obtains the results that the planners desire. Business organization planning is typically segmented into three types, Strategic Planning Tactical Planning Operational Planning

3. Effectively planning and passing down the right orders in hopes of being a business winner requires good information on which orders can be decided. Some information can become so valuable that it provides the firm a competitive advantage The ability of one business to perform at a higher level, staying ahead of present competitors in the same industry or market Business analytics can support all three types of planning with useful information that can give a firm a competitive advantage

4. BA IN COMPETITIVE ADVANTAGE The use of business analytics is a skill that is gaining mainstream value due to the increasingly thinner margin for decision error. Business analytics enables differentiation. It is primarily about driving change. Business analytics drives competitive advantage by generating economies of scale, economies of scope , and quality improvement. Taking advantage of the economies of scale is the first way organizations achieve comparative cost efficiencies and drive competitive advantage against their peers. Taking advantage of the economies of scope is the second-way organizations achieve comparative cost efficiencies and drive competitive advantage against their peers.

5. Components of Competitive Advantage Cost leadership Competitors Customer service Innovation Quality Technology Focus strategy Lowering cost Access to new or proprietary technology Branding Business Partners Corporate strategy Cost advantage Differential advantage Distribution network Niche strategies Pricing strategy Product or service variety Target markets Value proposition Business Partners

6. HOW BA HELP IN ACHIEVING COMPONENTS OF COMPETITIVE ADVANTAGE Competitive advantages come in many shapes and sizes. They include, but are not limited to, some of the following : Price leadership Sustainability Operation Efficiency Innovation Service effectiveness Product Diffrentiation

7. Characteristics Price leadership : From marketing point of view Offering Product or Services at lower cost to customer in the industry while making considerable profit Sustainability: Ensure Firm resource usage in a way that seeks balance to hurt neither the environment nor the bottom line of the firm profitability Ways BA help Identify Main Competitors monitors report and forecast competitor Prices so that firm can keep low cost profile by maintaining profit Identify the need for reallocation of resources to avoid environment damages. Suggest ways to reallocate and optimum utilization of resources.

8. Characteristics Operation Efficiency : Improve internal business activities over operation by reducing cost and can result in low price to customers Service Effectiveness : Make transactions more easier lowering the time to get services and enhancing customer value Ways BA help Identify Operation area which require correction modification and suggest alternatives to improve efficiency by selecting best alternative Getting customer opinions on service problem explain why the fix is needed selecting the best fix to improve service effectiveness

9. Characteristics Innovation: Introducing new or notable products with idea of getting competitor business Product Differentiation: Provide variety of Product and services than the Competitors Way BA help Obtain and validate customers needs and wants. Monitor customer reaction on new Product and report result Identify new product or services not offered by the competitors forecast potential of new products and profitability measures

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