Describe some competitive advantage strategies that are based on business processes

Question

What will be an ideal response?

Answer 1

Some of the competitive strategies that are based on business processes include:
1. Locking in customers—organizations can lock in customers by making it difficult or expensive for customers to switch to another product. This strategy is also called establishing high switching costs.
2. Locking in suppliers—organizations can lock in suppliers by making it difficult to switch to another organization, or, stated positively, by making it easy to connect to and work with the organization.
3. Creating entry barriers—competitive advantage can be gained by creating entry barriers that make it difficult and expensive for new competition to enter the market.
4. Establishing alliances—another means to gain competitive advantage is to establish alliances with other organizations. Such alliances establish standards, promote product awareness and needs, develop market size, reduce purchasing costs, and provide other benefits.
5. Reducing costs—organizations can gain competitive advantage by creating better business processes at reduced costs. Such reductions enable the organization to reduce prices and/or increase profitability.