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BusSimulation_-Week-4

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© © All Rights Reserved
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ALAMINOS CITY NATIONAL HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT


LEARNING ACTIVITY SHEET
BUSINESESS SIMULATION
Quarter 3, Week 4, February 28-March 4, 2022

I. Learning Competencies with code:

1. Prepare a strategic plan outlining the competitive environment and focusing on the
appropriate competition strategy.

II. Background Information for Learners:

COMPETITIVE
ANALYSIS

What is a Competitive Advantage?

A competitive advantage is an attribute that enables a company to outperform its


competitors. This allows a company to achieve superior margins compared to its competition and
generates value for the company and its shareholders.

Examples of Competitive Advantage

 Access to natural resources that are restricted from competitors


 Highly skilled labor
 A unique geographic location
 Access to new or proprietary technology
 Ability to manufacture products at the lowest cost
 Brand image recognition

Constructing a Competitive Advantage


Before a competitive advantage can be established, it is important to know the:

• Benefit: A company must be clear about what benefit(s) their product or service
provides. It must offer real value and generate interest.
• Target Market: A company must establish who is purchasing from the company and
how it can cater to its target market.
• Competitors: It is important for a company to understand other competitors in the
competitive landscape.

To construct a competitive advantage, a company must be able to detail the benefit that
they provide to their target market in ways that other competitors cannot.

1
Strategic for Competitive Advantage

1. Cost Leadership

If a company is able to utilize economies of scale and produce products at a cost lower
than that of its competitors, the company is then able to establish a selling price that is unable to
be replicated by other companies. Therefore, a company adopting a cost leadership strategy
would be able to reap profits due to its significant cost advantage over its competitors.

2. Differentiation

In a differentiation strategy, a company’s products or services are differentiated from that


of its competitors. This can be done by delivering high-quality products or services to customers
or innovating products or services. If a company is able to differentiate successfully, the
company would then be able to set a premium price on its products or services.

3. Focus
In a focus strategy, a company focuses on a narrow target market segment. This strategy is
successful if the company is able to successfully create products/services that can cater to these
customers. The focus strategy also has two variants;

a. Cost-focus: Lowest-cost producer in a narrow market segment


b. Differentiation-focus: Differentiated products/services in a narrow market
segment

Competition is the rivalry between companies selling similar products and services with the
goal of achieving revenue, profit, and market share growth.

Types of Competition
2
A. Direct Competition – a business that makes most of its money selling the same or similar
products or services to the same market as other businesses .

1. Secondary data sources can provide information about direct competition


2. Information from the local chamber of commerce
3. Direct competition may be located far away

B. Indirect Competition –a business that makes only a small amount of money selling the same
or similar products and services to the same market as other businesses
1. Harder to identify than direct competitors
2. Large retailers –Can be direct and indirect competition for many other businesses

a. Large retailers usually are able to keep larger quantities of products in stock
b. Large retail chains do not rely on a single product line
c. Large companies usually have more resources to devote to advertising

III. Exercises/Activities:

Activity 1: Conduct a research to compare the two businesses and determine which business has
the better competitive strategy and perform the following activities.

a. Make a List of Competitors


b. Summarize the Products and Prices offered by the competitors
c. List each Competitor’s Strengths and Weaknesses
d. Find out the Strategies and Objectives of the competitors

o Why is competitive analysis important to an entrepreneur?

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

o Why does competition affect your choices?

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

3
Activity 2: Successful business have a plan to maintain customer loyalty. Ask student to select a
business and then prepare a Top Ten List to maintain Customer Loyalty. Students will present
their information in a 10-slide presentation. This activity will be evaluated using the related
rubric.

IV. Reference:

Medina, Roberto. Small Business Management. Recto Manila, Philippines. Rex Book Store , Inc.

Prepared by: Checked by: Approved by:

Ever Lyn R. Navarro, DBA Lovelie V. Verceles PhD Jose Ramil A. Sibun
Teacher III Master Teacher I OIC-Asst. Principal, Academics

Romualdo F. Credo
ABM Coordinator

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