Free Seminar in Mandalay, Myanmar organised by Hub Myanmar Company Limited as 2nd Anniversary of Myanmar B2B Management

1. MANDALAY REGIONAL DEVELOPMENT:
COMPETITIVE ADVANTAGE
PROF.DR.AUNG TUN THET

2. PROFILE OF MANDALAY

3. MANDALAY
Center of Myanmar’s Culture – magnet for tourists
Second largest city
Strategic location in Central Myanmar
Important hub for transport of people and goods
Connectivity:
Other parts of country
China and India
Multiple modes of transportation

4. MANDALAY
City population of 1,225,553 (2014 census)
Economic hub of Upper Burma
Increased commerce with China
Upper Myanmar’s main commercial, educational and health center

5. MANDALAY
Major trading and communications center for northern and central
Myanmar
External trade to China and India

6. MANDALAY
Leading traditional industries:
Silk weaving
Tapestry
Jade cutting and polishing
Stone and wood carving
Marble and bronze Buddha images
Temple ornaments and paraphernalia
Gold leaves and of silver
Manufacture of matches, brewing and distilling

7. COMPETITIVE ADVANTAGE

8. PROSPERITY
Created
Not inherited
Do not grow out of natural endowments, labour pool, etc.

9. COMPETITIVENESS
Capacity to innovate and upgrade
Gain advantage because of pressures and challenges

10. COMPETITIVENESS
Benefit from :
Strong domestic rivals
Aggressive home-based suppliers
Demanding local customers

11. COMPETITION
Growing
Creation and assimilation of knowledge

12. COMPETITIVE ADVANTAGE
Created and sustained through localized processes
Differences in values, culture, economic structures, institutions,
histories
Environment – forward looking, dynamic, challenging

13. COMPETITIVE ADVANTAGE
Traditional thinking flawed
New perspectives
What works?
Why?
Apply

14. COMPETITIVE ADVANTAGE
Acts of innovation
New technologies
New ways of doing things
New basis for competition
Better means for competing in new ways

15. INNOVATION
New product design
New production process
New marketing approach
New way of training

16. INNOVATION
Incremental
Culmination of small insights and advances
Ideas “not new”
Investments in skills and knowledge, physical assets, brand
reputation

17. INNOVATION
New market opportunity
Serving market segments others ignored

18. INFORMATION
Important role in innovation and improvement
Research & Development
Market Research

19. DIAMOND OF COMPETITIVE ADVANTAGE

20. DIAMOND OF COMPETITIVE ADVANTAGE
Four Attributes
1. Factor Conditions
2. Demand Conditions
3. Related and Supporting Industries
4. Form’s strategy, structure and rivalry

21. DETERMINANTS OF COMPETITIVE ADVANTAGE
Firm’s Strategy,
Structure,
Rivalry
Related &
Supporting
Industries
Demand
Conditions
Factor
Conditions

22. FACTOR CONDITIONS
Factors of production
Skilled labour
Infrastructure
Capital

23. DEMAND CONDITIONS
Home market demand for goods and services

24. RELATED AND SUPPORTED INDUSTRIES
Presence or absence of supported industries and related industries

25. FIRM’S STRATEGY, STRUCTURE AND RIVALRY
How companies created, organized and managed
Nature of domestic rivalry

26. DIAMOND
Business environment
Companies born
Learn to compete
System
Essential ingredients for competitive success

27. ROLE OF GOVERNMENT

28. CONTRADICTORY VIEWS
“Interventionist” – Helper or Supporter
“Free Market” View
Both incorrect

29. GOVERNMENT
Catalyst
Challenger
Encourage companies raise aspirations
Transmitting and amplifying diamond

30. BASIC PRINCIPLES
Focus on specialized factor creation
Specialized apprenticeship program
Research efforts – UIC
Private investments

31. BASIC PRINCIPLES
Avoid intervening in factor and currency markets
Enforce strict product, safety and environmental standards
Limit direct cooperation among industry rivals
Promote goals that lead to sustained investment
De-regulate competition

32. COMPANY’S AGENDA

33. COMPANIES
Achieve and sustain Competitive Advantage
Recognize central role of innovation
Innovation grows out of pressures and challenges
Leadership

34. POLICIES
Create pressures for innovation
Seek out most capable competitors as motivators
Establish early warning systems
Improve national diamond

35. POLICIES
Welcome domestic rivalry
Regionalize/Globalize
Use alliances selectively
Locate home base to support competitive advantage

36. ROLE OF LEADERSHIP

37. MANAGERS
Focus on improving financial performance
Solicit government assistance
Seek stability
Reduce risk through alliances and mergers

38. LEADERS
Believe in change
Innovate continuously
Recognize need for pressures and challenges
Encourage appropriate-painful Government policies/regulations
Sacrifice for sustain Competitive Advantage

39. STRATEGIES FOR COMPETITIVE ADVANTAGE

40. 10 REASONS BUSINESS SUCCEED
1. Experience and skills of top managers
2. Energy, persistence and resourcefulness (will to make business
succeed of top managers)
3. Product cut above competition and service that doesn’t get in way
of people buying
4. Create “buzz” around product with aggressive and strategic
marketing
5. Deal-making skills to sell product at highest possible price

41. 10 REASONS BUSINESS SUCCEED
6. Developing new products to retain and build customer base
7. Deal-making skills to work with resource suppliers to keep costs
low
8. Treat employees, suppliers and partners fairly and respectfully
9. Superior location and/or promotion creating connection between
product and where obtained
10.Steady source of business during both good economic times and
downturns

42. ESSENCE OF COMPETITIVE ADVANTAGE
“Why should the customer purchase from this operation rather than
competition?”
Builds core of loyal customers
Niche markets
Edge beyond what competition has or does

43. POTENTIAL STRATEGIES FOR DIFFERENTIATION
Differentiating product or service from those of competition
One or two strategies

44. PRODUCT FEATURES AND BENEFITS
What makes the product unique and desired?
Consider product characteristics - style, handling, taste, quality
ingredients, comfort, production methods (natural or organic),
certification, etc.
Are product characteristics significantly different from those of
currently available products?
Can venture provide these features or benefits effectively?

45. LOCATION(S)
Chosen with care
Directly influence other decisions - marketing, product distribution,
product selection

46. STAFF
Ensure front and management:
Produce good products
Provide positive customer experience
Professional
Expertise

47. OPERATING PROCEDURES
Policies, processes, and standards
Smooth operations
Create value
Offer positive customer experience

48. PRICE
Fundamental cost advantage
Lower overhead or shipping costs
Cheaper labor, and/or low-priced raw materials

49. CUSTOMER INCENTIVE PROGRAMS
Attract new and repeat customers
Giveaways, coupons, sales, promotions, and/or volume discounts

50. GUARANTEES AND WARRANTIES
Perception of quality product reinforced

51. BRAND NAME RECOGNITION
Carefully conceived and executed marketing plan and strategy
Focus on customer major contribution to business success

52. QUALITY
Underlying factor
Value-added strategies - third party certification

53. COMPETITIVE ADVANTAGE EVALUATION PROCESS

54. EVALUATE RESOURCES
Basis for competitive advantage
Critical look at existing resources and product/service offerings

55. CLARIFY GOALS
Clear idea specific and achievable goals
What business will do for itself and customers in future
Benchmarks for success
Maintain focus

56. DEFINE CUSTOMERS
Needs and wants of potential customers established
Characteristics of customers examined to identify commonalities

57. EXAMINE COMPETITORS
Direct competition
Indirect competitor
Compare strengths and weaknesses of competition

58. MAKE SENSE OF IT ALL
Understanding needs of market (customers)
Devising strategy
Target market
Business’ strengths and weaknesses
Business’ goals
Product/service developed
Strategies of competition

59. KEY QUESTIONS
Business and target market clearly defined?
Competitors?
Specific strategy for success?
Competition’s moves tracked regularly?
Business taking advantage of competition’s weaknesses and/or any
competitive opportunities?

60. KEY QUESTIONS
What has been learned from competition’s mistakes/strengths?
How do business’ prices and products compare with rest of
industry?
Who are customers?
Does business have (or build) loyal base?
Are employees trained in customer service?
What trends ahead, and can business take advantage of them?

61. KEY QUESTIONS
“Building sustainable competitive advantages,
revolves around differentiating a product from the competition,
along attributes that are important and relevant to customers.”

62. KEEPING THE EDGE SHARP
Competitive advantages stay competitive advantages without
significant effort
Over time edge erode
Establishing competitive edge
Maintaining it