The Disadvantages Of Competitive Advantage In A Business Company
“Success is based on inventing an offering that addresses a real scarcity in the world, charging a price for it, and inventing a way of making it available that is cheap enough to leave a high margin.” -- Kees van der Heijden, Back to basics: exploring the business idea, Strategy & Leadership, 29.3, 2001
5.1 Introduction – Competitive Advantage
One common characteristic of highly successful companies is that they were creative and unique in the way they were running their businesses. These companies always had a huge advantage over their competitors. They have a clear understanding of their internal and external environment. They build on their core strengths and make productive use of the opportunities in the market place and thus create a competitive advantage. Strategic management explains the importance of competitive advantage and its contribution to the success of an organization and survival in the highly competitive environment.
Competitive Advantage:
A business firm is said to have competitive advantage whenever it has an edge over its rivals in attracting customers and defending against competitive forces (Kelly & Booth, 2004). A sustainable competitive advantage (i.e.) a trait that gives benefit in the long term, gives a company a lot of motivation to compete in the market place. A business firm’s core competencies and abilities can bring huge benefits not only help in framing a strategy but also help build a strong competitive advantage. There are high
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