Competitive Advantage 3.

Quantifiable Value –
Measurable benefits.
• Formula:
• Definition: The ability of a
Value = Benefits - Costs
company to produce goods/services
o Benefits: Functional,
better than competitors.
Emotional, Social
• Importance: Ensures higher
o Costs: Monetary, Time &
margins, more customers, and
Effort, Sacrifices
brand loyalty.
• Michael Porter’s Definition:
Competitive advantage means
“being different” by choosing
unique activities. Maintaining Profitability
• Ways to Gain Competitive
Advantage: • Strategies:
1. Lower 1. Cost Management
production/distribution (Efficiency, supply chains)
costs. 2. Pricing Strategy (Premium
2. Serve a niche market well. vs. competitive pricing)
3. Offer a highly differentiated 3. Customer Segmentation
product. (Target high-value
customers)
4. Innovation (New
features/services)
Value-Based Competition 5. Customer Retention
(Loyalty programs)
6. Feedback & Adaptation
• Focuses on delivering superior
(Continuous improvement)
value to customers.
• Key Aspects:
o Understanding customer
needs/preferences.
o Aligning products/services Competitor Analysis
to meet needs.
o Balancing value delivery • Identifies and assesses competitors
with profitability. to make strategic decisions.
• Steps in Competitor Analysis:
1. Identifying competitors
(Direct, Indirect, Broad)
Value Proposition 2. Assessing competitors
(Objectives, strengths,
weaknesses)
• Definition: Statement outlining
3. Selecting competitors
unique benefits of a
(Prioritize biggest
product/service.
threats/opportunities)
• Key Elements:
• Competitive Benchmarking:
1. Relevance – Solves a
o Compares company
specific problem.
performance against
2. Differentiation – What
competitors.
makes it unique.
Porter’s 4 Basic 1. External Customers – Buy
final products but are not
Competitive Positioning part of the company.
Strategies 2. Internal Customers –
Employees/teams within
the company aiding
1. Cost Leadership – Offering the
operations.
lowest price.
• Types of Customer Needs:
2. Differentiation – Unique
1. Functional Needs –
product/services.
Performance and
3. Cost Focus – Low-cost strategy for
usefulness.
a niche market.
2. Social Needs – Image and
4. Differentiation Focus – Unique
societal perception.
product for a niche market.
3. Emotional Needs –
Feelings and experiences.

Customer Value Analysis

(CVA) Customer Decision-
• Evaluates how customers perceive
Making Process
product/service worth.
1. Need Recognition – Identifying a
• Types of Customer Value:
problem.
1. Functional Value –
2. Information Search –
Performance and
Researching available options.
usefulness.
3. Evaluation of Alternatives –
2. Monetary Value –
Comparing options.
Affordability and cost
4. Purchase Decision – Selecting and
savings.
buying.
3. Emotional Value – How
5. Post-Purchase Evaluation –
the product makes
Assessing satisfaction.
customers feel.
4. Social Value – Prestige and
social influence.
5. Epistemic Value – Novelty
and learning. Market and Market
Analysis
• Definition of Market: Space
Understanding Customers (physical or digital) where buyers
in Technopreneurship and sellers interact.
• Market Identification Steps:
1. Research & Data Collection
• Definition of Customers:
2. Segmentation
Individuals or organizations buying
(Demographics, behaviors,
a product/service.
geography)
• Types of Customers:
3. Target Market Selection
4. Positioning (Differentiation
from competitors)
 • Market Analysis Importance: 2. Demographic – Age,
o Helps understand gender, income.
industries, customers, 3. Psychographic – Interests,
competitors. values.
o Guides marketing strategy. 4. Behavioral – Purchase
o Identifies opportunities and habits.
threats.

Dimensions of Market
Analysis Market Analysis Tools
• SWOT Analysis: Strengths,
• Market analysis involves Weaknesses, Opportunities,
evaluating different aspects of a Threats.
market to determine its potential • PESTLE Analysis: Political,
and competitive landscape. The Economic, Social, Technological,
key dimensions are: Legal, Environmental factors.
• Porter’s Five Forces: Analyzes
1. Market Size – The total potential industry competitiveness.
demand for a product or service. • Consumer Trend Analysis:
2. Market Segmentation – Dividing Identifies emerging customer
the market based on customer behaviors.
characteristics (demographics, • Big Data & Predictive Analytics:
geography, behavior). Uses data trends to forecast future
3. Market Trends – Changes in markets.
consumer behavior, preferences,
and industry shifts over time.
4. Market Growth Rate – The speed
at which the market is expanding.
5. Market Profitability – The Components of a Strong
potential to generate revenue and Value Proposition
profit in a specific market.
6. Distribution Channels – The 1. Target Customer Segment –
methods used to deliver Defines the group served.
products/services to customers. 2. Customer Problem/Need –
Identifies pain points.
3. Unique Offering – How the
product solves the problem.
4. Key Benefits – Advantages
provided.
Market Segmentation 5. Differentiation from Competitors
– What makes it stand out.
• Definition: Dividing a broad 6. Proof/Validation – Testimonials,
market into smaller groups based case studies.
on shared traits.
• Types of Segmentation:
1. Geographic – Location-
based.
Tips for a Strong Value
Proposition
• Be direct and concise.
• Ensure clarity in messaging.
• Sound positive and confident.
• Gather and use customer
feedback.
• Highlight the unique selling point.