Social Media and Competitive Advantage

Supportive Activities:

Administration and Management:
-electronic scheduling and messaging systems

Human Resources:
-workforce planning systems

Technology:
-computer-aided design systems

Procurement:
-computerized ordering systems

Primary Activities:
Inbound Logistics
-automated warehousing systems

Operations
-computer controlled machining systems

Sales and Marketing
-computerized ordering systems

Service
-equipment maintenance systems

Outbound Logistics
-automated shipment scheduling systems

i. Competitive Rivalry
It considers the number of existing competitors and what each one can do.

ii. Power of Suppliers
This force analyzes how much power a business’s supplier has and how much control it has over the potential to raise its prices, which, in turn, lowers a business’s profitability.

iii. Power of Customers
Consumers have power when they are fewer in number but there are plentiful sellers and it’s easy for consumers to switch.

iv. Threat of Substitute Products
This force studies how easy it is for consumers to switch from a business’s product or service to that of a competitor.

v. New Entrants into the Industry
This force considers how easy or difficult it is for competitors to join the marketplace.

Competitive advantage is the favorable position an organization seeks in order to be more profitable than its rivals. To gain and maintain a competitive advantage, an organization must be able to demonstrate a greater comparative or differential value than its competitors and convey that information to its desired target market.

For example, if a company advertises a product for a price that's lower than a similar product from a competitor, that company is likely to have a competitive advantage. The same is true if the advertised product costs more, but offers unique features that customers are willing to pay for.

The use of Information Technology to support the sharing of content among networks of users.

i. Social media providers
ii. Users
iii. Communities

i. Capital is the investment of resources for future profit

ii. Human capital is the investment in human knowledge and skills
for future profit.

iii. Social capital is the investment in social relations with the
expectation of returns in the marketplace.
a. Value of social capital: information, influence, social credentials, personal reinforcement

i. Pay-per-click (advertising)
ii. Freemium
iii. Ad-blocking software

i. Define your goal
ii. Identify Success Metrics
iii. Identify Target Audience
iv. Define Your Value
v. Make Personal Connections
vi. Gather and Analyze Data

I. KPI’s
II. Leads
III. Reach
IV. Engagement
V. Conversion