Chapter 2 – Identifying Competitive Advantage Introduction What is competitive advantage? - A product or services that an organization’s customers place a greater value on than similar offerings from a competitor - Unfortunately, CA is temporary because competitors keep duplicate the strategy. - Then, the company should start the new competitive advantage Michael Porter’s Five Forces Model is useful tool to aid organization in challenging decision whether to join a new industry or industry segment 1. Buyer Power · High – when buyers have many choices of whom to buy · Low – when their choices are few · To reduce buyer power (and create competitive advantage), an organization must make it more attractive to buy from the company not from the competitors · Best practices of IT based - Loyalty program in travel industry, for example rewards on fre