Competitive Advantage

Company can gain competitive advantage by differentiation or by cost, either on a broad or focused basis

Example in value chain

In-bound logistics (Plant)

Operations

Built-to-Order ?

Outbound logistics (Plant to distributors or distributors to stores)

Reduce inventory: JIT, forecast/planner, run-out

Best delivery: Unserved Orders

Sales and marketing

Coverage expansion, Productivity, Distributors/Branches/Sub-D

Marketing

Seller capability (communicate value of products, build the relationship with stores, record data)

Service

Technology and Systems

Report system (from seller POS back to central office), on-time with enough and make-sense data (Business Intelligence)

Control (customer credit, inventory, sales volume)

Visibility (GPS in customer coverage)

HR

Reduce attrition rate, raise the quality of sellers

Cost-saving projects

Innovation, collaboration

Administration