achieving and sustaining competitive advantage for the college
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ACHIEVING AND
SUSTAINING COMPETITIVE
ADVANTAGE FOR THE
COLLEGE: FOSTERING CREATIVITY,
INNOVATION, BRAND DEVELOPMENT AND MARKETING
CAPABILITIES AMONGST STAKEHOLDERS
Being a paper presented by Ayodele Samuel Olatiregun
at a 2-day seminar held at
Collective College of Accountancy Ltd, Eleyele
On
July 5, 2009
PAPER OUTLINE
What is Competitive Advantage?
Achieving Competitive Advantage
Sustaining Competitive Advantage
Fostering Creativity amongst Stakeholders
Fostering Innovation amongst Stakeholders
Fostering CCA Brand Development amongst
Stakeholders
Fostering Marketing Capabilities amongst
Stakeholders
Conclusion
WHAT IS COMPETITIVE ADVANTAGE?
Competitive advantage is, in very basic words, a
position a firm occupies against its competitors.
A competitive advantage exists when the firm is
able to deliver the same benefits as competitors but
at a lower cost (cost advantage), or deliver benefits
that exceed those of competing products
(differentiation advantage). Thus, a competitive
advantage enables the firm to create superior value
for its customers and superior profits for itself
WHAT IS COMPETITIVE ADVANTAGE?
According to Michael Porter, the three methods for creating a sustainable competitive advantage are through:
1. Cost leadership - Cost advantage occurs when a firm delivers the same services as its competitors but at a lower cost;
2. Differentiation - Differentiation advantage occurs when a firm delivers greater services for the same price of its competitors. They are collectively known as positional advantages because they denote the firm's position in its industry as a leader in either superior services or cost;
3. Focus (economics) - A focused approach requires the firm to concentrate on a narrow, exclusive competitive segment (market niche), hoping to achieve a local rather than industry wide competitive advantage. There are cost focus seekers, who aim to obtain a local cost advantage over competition and differentiation focuser, who are looking for a local difference.
A MODEL OF COMPETITIVE ADVANTAGE?
Resources
Distinctive
Competencies
Capabilities
Cost Advantage
Or
Differentiation Advantage
Value
Creatio
n
RESOURCES AND CAPABILITIES
In order to develop a competitive advantage the
College must have resources and capabilities that
are superior to those of our competitors. Without
this superiority, our competitors simply could
replicate what the College is doing and any
advantage could quickly disappear.
RESOURCES AND CAPABILITIES
Resources are the college-specific assets useful
for creating a cost or differentiation advantage that
few competitors can acquire easily. The following
are some examples of such resources:
Proprietary know-how
Installed customer base
Reputation of the College
Brand equity
RESOURCES AND CAPABILITIES
Capabilities refer to the College's ability to utilize
its resources effectively. An example of our
capability is the ability to bring ACCA Nigeria to
Ibadan faster than our competitors. Capabilities are
embedded in the routines of the organization and
are not easily documented as procedures and thus
are difficult for competitors to replicate.
DISTINCTIVE COMPETENCIES.
The College's resources and capabilities together
form its distinctive competencies. These
competencies enable innovation, efficiency, quality,
and customer responsiveness, all of which can be
leveraged to create a cost advantage or a
differentiation advantage
ACHIEVING COMPETITIVE ADVANTAGE
The primary factors of competitive advantage are
innovation, reputation and relationships.
Engaging in strategic management
Understanding the strategic position of the College
Making strategic choices for the future of the College
Turning strategy into action
THE STRATEGIC POSITION Is concerned with the impact on strategy of the external
environment, an organisation’s strategic capability
(resources and competences) and the expectations and
influence of stakeholders
Strategi
c
Positio
n
Environmen
t
Expectation
s &
Purposes
Strategic
Capability
STRATEGIC CHOICES Involve understanding the underlying bases for future
strategy at both the business unit and corporate levels and
the options for developing strategy in terms of directions and
methods of development
Strategi
c
Choice
s
Business-
level
strategy
Directions &
Methods of
Developme
nt
Corporate-
level &
International
Strategy
STRATEGY IN ACTION
Is concerned with ensuring that strategies are working in
practice
Strateg
y in
Action
Business
Structuring
Managing
Strategic
Change
Enabling
Success
SUSTAINING COMPETITIVE ADVANTAGE (SCA)
Sustainable competitive advantage is the prolonged benefit of implementing some unique value-creating strategy based on unique combination of internal organizational resources and capabilities that cannot be replicated by competitors.
Sustainable competitive advantage allows the maintenance and improvement of the enterprise's competitive position in the market. It is an advantage that enables business to survive against its competition over a long period of time.
SUSTAINING COMPETITIVE ADVANTAGE
The Focal Point of Strategy is Sustainable
Competitive Advantage
Management is committed to creating economic
value to our stakeholders, and the best means to
create that value is to focus on sustainable
competitive advantage as the key.
THE FIVE CRITERIA OF SUSTAINABLE
COMPETITIVE ADVANTAGE
1. unique
2. difficult to replicate
3. sustainable
4. superior to the competition
5. applicable to multiple situations
THE FOCAL POINT OF STRATEGY
FOSTERING CREATIVITY AMONGST STAKEHOLDERS
Creativity is a mental and social process involving
the generation of new ideas or concepts, or new
associations of the creative mind between existing
ideas or concepts. Creativity is fueled by the
process of either conscious or unconscious insight.
An alternative conception of creativeness is that it is
simply the act of making something new
FOSTERING CREATIVITY AMONGST STAKEHOLDERS
Nickerson provides a summary of the various creativity techniques that have been proposed. These include approaches that have been developed by both academia and industry:
Establishing purpose and intention
Building basic skills
Encouraging acquisitions of domain-specific knowledge
Stimulating and rewarding curiosity and exploration
Building motivation, especially internal motivation
FOSTERING CREATIVITY AMONGST STAKEHOLDERS
Encouraging confidence and a willingness to take risks
Focusing on mastery and self-competition
Promoting supportable beliefs about creativity
Providing opportunities for choice and discovery
Developing self-management (metacognitive skills)
Teaching techniques and strategies for facilitating creative performance
Providing balance
FOSTERING INNOVATION AMONGST STAKEHOLDERS
Innovation has been described as ‘the successful implementation of creative ideas within an organisation’
Creativity, which includes invention, is only the starting point for innovation, a necessary but not sufficient condition for it.
Creativity takes time, and studies suggest that people need to have been part of a creative team for two years to be really productive.
FOSTERING INNOVATION AMONGST STAKEHOLDERS
Effective Teamwork
Continuous Improvement
Collective Vision
Conscious Transparency
Cross-cultural communication
EFFECTIVE TEAMWORK
Teamwork is a joint action by two or more people, in which each person contributes with different skills and express his or her individual interests and opinions to the unity and efficiency of the group in order to achieve common goals.
Not all teams are effective!
CCA advocates EFFECTIVE TEAMWORK, to achieve ACCA’s ALP Gold Status in 2010
CONTINUOUS IMPROVEMENT
Continuous improvement, in regard to
organizational quality and performance, focuses on
improving customer satisfaction through continuous
and incremental improvements to processes,
including by removing unnecessary activities and
variations.
COLLECTIVE VISION
Collective visions often grow out of collaboration, teamwork, and empowerment.
At CCA, we are likely to be more successful in achieving in-depth learning when management work with staff and the community (faculty & students) to build a collective educational vision that is clear, compelling, and connected to teaching and learning. This collective vision helps focus attention on what is important, motivates staff and students, and increases the sense of shared responsibility for student learning
CONSCIOUS TRANSPARENCY
Transparency, when used in a social context,
implies openness, communication, and
accountability. It is a metaphorical extension of the
meaning a "transparent" object is one that can be
seen through. Transparent procedures include
open meetings, financial disclosure statements,
budgetary review, audits, etc.
CROSS-CULTURAL COMMUNICATION
Cross-cultural communication looks at how
people from differing cultural backgrounds
communicate, in simlar and different ways among
themselves , and how they endeavour to
communicate across cultures.
FOSTERING CCA BRAND DEVELOPMENT AMONGST
STAKEHOLDERS
Why is Successful Branding So Important Today?
The Brand Is Everything
The Brand’s Creed
Great Strategy Begins with Great Research
The Target Audience Holds the Keys to Your Brand’s Success
Developing a Brand Statement (Brand Proposition)
A Promise Is a Promise
Deliver the Unexpected
Winning their Hearts and Minds
FOSTERING CCA BRAND DEVELOPMENT AMONGST
STAKEHOLDERS
To successfully position your brand above your competitor’s continuing fight for your customers, you must develop a brand proposition that when conveyed in marketing and advertising campaigns, will provide an attractive, unique, and relevant message to current and potential customers. In addition, this proposition must be realized and consistently echoed by senior executives, customer support, R&D teams, marketing staff, sales staff, and strategic partners - John D Bloise
FOSTERING MARKETING CAPABILITIES AMONGST
STAKEHOLDER
Market-Advantage Test
Market Analysis
Market Coverage
Market Development
Market Penetration
Market Share
Market Knowledge
CONCLUSION
Our vision is to be a leading global education and
training provider
We believe we can make it happen
Like NIKE, let’s ‘Just Do It’
THANK YOU ALL, GOD BLESS!
WE WISH YOU THE BEST
Wherever your job, career or business takes you in
the future, I do hope it is profitable.
We hope to meet with all our
current and prospective
lecturers on Saturday 8th of
August, 2009, during our
next LECTURERS’ COURSE
REVIEW MEETING.
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