Source of sustainable competitive advantage. ◦ Intellectual Property ( Patents, brands). No competitors can access the same intellectual property ◦ Superior business processes. Profit margins good from low costs / superior quality / customer relations leading to loyalty / etc ◦ Blue ocean strategy. Breaking out from competitors into ‘new’ markets. 2
Micro-market analysis focuses on customer needs. Favourable when there is; ◦ Identifiable and unmet need/want. ( = opportunity) ◦ No other product to meet that need. (= no competition) ◦ Likely growth of that segment and/or other opportunities. (= strong future / return on investment) (Porters generic strategies – focus within segment) 3