Walmart Porter's Competitive Advantage

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2.1 Competitive advantage: Business dictionary defines competitive advantage as: “superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities”. Competitive advantage is a concept introduced by Michel Porter in1985, in his view, competitive advantage can be achieved through cost leadership, differentiation and focus. Determining competitive advantage relies on three indicators: benefit, target market, and competition. Benefit takes account of clear vision to what is the benefit of the business and its value. Porter viewed the activities of any company as a “value chain”. Through optimizing value chains, both primary and secondary activities add value to customers. All these activities can be a source of competitive advantage over the competition (Porter, 1985). Target market denotes which are the customers and how to create demand for company 's offering. Lastly, competition takes in identifying the competition and how to surpass their offerings. In short, to succeed, a business must articulate the benefit it offers its target market that outperforms…show more content…
Brands through licensing or franchising require extra consideration. Professor Khan of Wharton indicates that “The licensor needs to build strong trusting relationships with local partners to make sure that they deliver to the values, quality, and attributes that are associated with a brand.". Food business cannot stand on one-time visit, its repeated visit that determines success of this sector. Professor Khan "For repeat, the product or service has to provide a real benefit over and above the other possibilities. Even if consumers want to seek variety in meals, a good restaurant will offer enough quality and value that people will eventually return (Anon,
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