The Four Types Of Competitive Advantage

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The value chain performance needs to link the business performance to effectively show the relationship to the corporate finance. Therefore, competitive advantage plays an important role. Competitive advantage suggests other factors play a role in the industry leadership such as inherited factors. Clusters are formed which can grow branches as sufficient materials and labor is sufficient to retain business. They are formed with companies that are interconnected, companies that provide services or suppliers. The clusters can increase the productivity within the cluster. It can drive innovations within a particular field or stimulate new competition. Therefore, companies seek a competitive advantage in the market. Competition never…show more content…
For instance, the marketing must develop the brand, so the sales associate can sell the product. Customer service is then a factor to lock in a satisfied customer. That customer will then tell his friend about the product and services the company provided. This may also lead to customer loyalty.
Companies are in business to make a profit. Therefore, a company must be competitive. Some dimensions are the cost, quality, response time and flexibility. Leadership may look at reducing cost to make the product.
Competitive Advantage One step to competitive advantage is to understand the different types and what contingencies exist (Kaleka, Morgan, 2017). The economic value added (EVA) can help to drive the product which breaks down into revenue, costs, and assets. Thus, taking into consideration of the past steps and incorporating these to drive the competitive advantage.
Thought the years there have been companies that are successful and are not successful in competitive advantages and the value chain. Furthermore, we see that when a company does not have the customer delight, profits suffer. interrelationship between the four elements. We also see that companies thrive when they do have these strategies implemented.

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