1. Step 2. Analyze Internal Environment Tool To Identify Ability to Compete in Market

2. Steps in Analyzing Environment 1.Identify Competitor (s). 2.Identify internal factor (s). / Focus on relevant skills, resources, and assets in the industry. 3. Classify as strength or weakness & estimate magnitude of strength/weakness. 4.Evaluate importance of factor and its impact on ability to compete.

3. 1. Identify Competitor (s) (Tender Care)

4. 2. Identify Internal Factor(s): Skills, Resources, and Assets Market Market Share Sales or Share Growth Rate Competition Product, promotion, price, distribution factors relative to competition Financial & Economic Margins Profits Economies of scale

5. 2. Identify Internal Factor(s): Skills, Resources, and Assets Technological Ability to cope with change Technological skills Patent Protection Sociopolitical Responsiveness & flexibility to environmental change

6. 2. Identify Internal factor(s): Sample Skills & Assets & Resources To develop innovative new products To assure quality via precision manufacturing To manage large advertising budgets To obtain dealer cooperation in display & retail promotion Long term contractual arrangements Complementary products that enhance value of main product Customized product specifications or ordering systems that simplify reordering Intellectual property rights Brand equity Sales force Access to raw materials Distribution

7. 3. Classify Factor as Strength or Weakness FactorCompetitor ACompetitor BCompetitor C Customer Awareness543 Product Quality543 Product Availability354 Technical Assistance343 Selling Staff452

8. Determine Whether You have Strength (Competitive Advantage) to Go Against the Competition David vs. Goliath or TenderCare vs. P&G, Kimberly Clark?

9. Competitive Advantage Determines success Supported by assets & skills Valued by customers “Competition-proof” Substantial Adjusts to environmental changes Promotable to customers

10. Types of Competitive Advanage Lowest Delivered price Superior product benefits Superior customer service Established brand name or company reputation for quality Innovative features or options Better spatial availability to the buyer (due to delivery policies or distribution locations)

11. Competitive Advantage in Diaper Industry What are key competitive advantage(s) in the diaper industry? Will Tender Care have any competitive advantage? If so, what?