Economist / House Meeting of the Eastern Province in Qatif on Feasibility Studies and Competitive Advantage

Qatif, 13 Dhu al-Qa'da 1439 AH, corresponding to July 26, 2018 [SPA] At a meeting organized by the Fanar Platform (one of the initiatives of the General Authority of Small and Medium Enterprises) in cooperation with the Al-Sharqia Chamber under the title "feasibility studies and competitive advantage" A number of young businessmen.
Dr. Al-Shamasi emphasized the importance of the availability of competitive advantage to ensure the success and continuity of small and medium enterprises, highlighting the need to study the expected risks and the worst of case in initial feasibility studies.
Some have defined it as "anything that distinguishes the organization or its products from its competitors from the point of view of the end customer" or "the ability of the organization to reduce its total costs and to obtain superior returns over competitors "; "The ability to provide superior value to the customer" and some define it as "everything that makes the organization realize economic profits" higher than the profit rate of competitors in the same industry, explaining that profit economic is to realize profits while covering capital costs. ] Al-Shamasi explained that the realization of this advantage involves the application of all or part of the competitive advantage strategies, which are based on three strategies (cost, excellence and concentration), which means that the benefit can come from a reasonable price. And this is done only by lower costs that affect the value of the final product, or (excellence), ie offering a product with a value higher than that of the competitors, or (concentration), c & Ie to offer a product to a small target group. One, explaining that the return is not an absolute advantage, but a benefit if it is superior or equivalent to what it achieves
He adds that the acquisition of a competitive advantage requires time on the part of customers, the knowledge of competitors, market research, risk reading … The company can start with a competitive advantage but may lose some of its benefits. (Internal building in the organization, competitive environment), internal construction means the workplace, the job, the appropriate staff, etc.
As for the competitive environment that creates the advantage, Al-Shamasi (Porter's model) has reviewed the five influential forces in competition (barriers to entry, bargaining power of customers, alternatives competition and the bargaining power of suppliers). It is easier, it does not have a competitive advantage and the geographical space in which it is protected does not have to enter the market, emphasizing that customers and suppliers can impose an opinion on the seller, especially if the alternative has an impact on the competitive advantage, the competition remains impressive on K For example.
On the feasibility study, Dr. Al-Shamasi indicated that three components (market studies, future expectations and risks) were envisaged: possibility to modify inputs, price fluctuation and emergence of risks, and ask if the project would remain profitable in the short and long term The average is that successful projects are self-sustaining in terms of renewed inputs and changing circumstances, all the more so as fixed costs at the beginning of any study will turn into variable costs, the worst case scenario must be put in place to ensure survival and maintain a competitive advantage.

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