A competitive advantage is an advantage in some way that has a company to other companies in the same sector or market, and allowing you to have a better performance than the companies and thus a competitive position in the sector or market.
Some areas in which a company could have a competitive advantage are the product, the brand, customer service, production process, technology, personnel, infrastructure, location, distribution, etc.
which it is a competitive advantage
For example, a company might have a competitive advantage in the following cases:
to have a single innovative product and difficult to imitate by competitors, which allows you to differentiate or distinguish this. to have a valuable brand that allows that any product entering
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allow an increase in profitability : should allow the company to have an increase in profitability that at least reaches placed above the average profitability of the sector or market. be sustainable over time : it should be able to stay in the medium or long term; for example, a technology able to adapt to market changes and not one that will shortly become obsolete. be elusive or even : to be elusive or even by the competition; for example, a product difficult to imitate by competitors due to its unique components.
The idea of the concept of competitive advantage is that a company must constantly seek obtain, maintain that or those who already have, and make the most of, if you want to achieve a better performance than other competing companies, and thus have a position competitive in the sector or market.
There are several ways to gain a competitive advantage, but the two main ones are looking for a cost leadership (a comparative advantage or cost advantage), and seek a differentiation (a differential
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Maintaining a competitive advantage could mean that advantage to strengthen it more lasting and meaningful; for example, if a company 's competitive advantage your sales force, keeping it could mean finding new and better ways to train them.
While maximize competitive advantage could mean attempt to obtain the maximum benefit from this; for example, if a company has a competitive advantage an alliance with a strategic partner, make the most could mean seeking new agreements with such partner; or if you have a competitive advantage to its distribution system, make the most of it could mean using the system to sell other complementary products already sold.
Finally, take advantage of a competitive advantage it could also mean convert that advantage into a business opportunity; for example, if a company 's competitive edge knowledge and technology needed to produce a product that already exists in the market, but with higher quality, make that advantage could mean that product to the market
1. What is Vancity 's competitive advantage over other types of financial institutions? As globalization increased competition through the worldwide interconnectedness, it became more difficult to hold on to a company’s competitive advantage. Vancity, founded in 1946, enjoys its own competitive advantage to be one of the greatest employers in Canada.
According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. TJ is Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the company’s strategy. Recommendations and
What historically have been Apple’s competitive advantages? Apple Inc. has rare case of building a real sustainable competitive advantage in comparison to other brands. These include brand appeal, and strong customer loyalty (Barney, 1991). Apple has successfully enabled strong customer loyalty through effectively fulfilling their customer needs using their unique designs and product innovations.
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
Often media points to Apple’s massive cash reserve as a key strength that the company could leverage to become even more successful (Ferrell & Hartline, 2014). If Apple asked, what should Apple do with the cash (Ferrell & Hartline, 2014)? Apple could better meet the consumer's needs and wants by strategically investing that cash for the company’s future by developing and leveraging a competitive advantage strategy (Ferrell & Hartline, 2014). A competitive advantage stems from strengths the organization possesses and weakness the competitor possesses (Ferrell & Hartline, 2014). Having a competitive advantage over their competitors can also be based on perception rather than reality (Ferrell & Hartline, 2014).
To do this it needs to have a competitive advantage over its its rivals. A competitive advantage is something a company does better than its rivals that gives it an advantage over its rival. Porter (1988) states that a firm performs many activities that can contribute to a firms relative cost position and create a basis for differentiation which can create a cost advantage that gives a firm a competitive advantage over its competitors. A company’s competitive advantage and competitive strategy are both interrelated. Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.
This can be achieved through many avenues including offering a better-quality product or service, lowering prices and increasing marketing efforts. Sustainable competitive advantage refer to maintaining a favorable position over the long term, which can help boost a company’s image in the marketplace, its valuation and its future earning potential. Competitive advantage occurs when an organization acquires or develops an attributes or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology can provide competitive advantage whether as a part of the product itself as an advantage to the making of the product or as a competitive aid in the business process for example better identification and understanding of
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. There are three types of competitive advantage. a) Cost leadership strategy occurs when a firm a delivers the same services as its rivals but at a lower price. b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals. c) Focus strategy is a focused approach requires the firm to concentrate along one specific segment either a cost leadership or a specialization strategy.
COST STRUCTURE OF SAMSUNG Low cost structure of Samsung and high responsiveness to economic events has made Samsung more competitive. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. Under the resources-based view of strategic management, effective resources available to a firm, as well as the competency of a firm is responsible in affecting competitive advantage received by a firm.
Competitors – The industry that Nissan currently operates in provides lots of potential competitors for them as many automobile companies are developing electric cars which are something Nissan are very keen on focusing on. Nissan currently only run a small market share of the industry so many competitors are dominating the market such as Ford, Vauxhall etc. Nissans competitors have many strengths and weaknesses against Nissan. Some companies such as Ford focus heavily on fuel powered cars which means they will have an advantage against Nissans fuel powered range but Nissan will have an advantage over them with Nissans electric cars and the amount of research that has been put into it. Other companies such as Tesla whose main focus is electric cars are a fairly big competitor towards Nissan and the Nissan leaf range.
When a company is competing through its differentiation advantage; it would try to carry out its activities in a much better manner than the
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
In 1985, Harvard Business School Professor Michael Porter published his new book “The Competitive Advantage” which focuses the organisation internal environment. In this book, along with an in depth analysis of the competitive strategies which are Cost leadership, differentiation and Focus, he also concentrates on the firm’s value chain. 1. Cost Leadership: In cost leadership, an organisation aims to become the low cost provider in its industry. Examples are Aldi, Lidl, Ryan Air etc 2.
Mr Price has a wide range of competitors such as H&M, Woolworths and Pick ‘n Pay. A competitive advantage describes how the business has benefits or strengths over its competitors in the market. By having this, the competitors don’t seem as a threat to the company. It’s used