What Is Competitive Advantage?

1.What is competitive advantage? Please, include all the components for a good definition.

a competitive advantage exists when the firm is able to deliver the same benefits as the competition but at a lower cost. a competitive advantages enables the firm to create superior value for its customers and superior profits for itself. customers buy from a company because of a distinct advantage that brings that company over its competition and this advantage helps to grow the company. competitive advantage is an important part of a sales strategy.

2.What are the cost drivers companies should use to achieve competitive advantages?

a strong defense of the market position against rivals, defending against imitation, offering a better value and the cost to produce a product. etc. all this has a price and drives companies should use to achieve competitive advantages because a company always has to be a step above its competitors.

3.What are the value drivers companies should use to achieve competitive advantages?

some of the values that drives companies that should use to achieve competitive advantages are customization, geography, risk assumption ( warranties), quality, delivery (just-in-time), technology, services, etc.

4.How do companies achieve competitive positioning with customers?

Companies must create strategies to achieve competitive positing with customer, for example, by encouraging customers to stay with you rather than going to competitors. achieve customers needs (desires, wants) designs a products to satisfy customers. but balancing differentiation with costs. A way to a company decides to know that customers have different needs making a segment a market and developing product to each group of customers needs.

5.How can companies defend themselves against competitors?

ways to companies defend themselves against competition:

Increase customer retention

Reduce imitation by competitors

protected from industry competitors by cost...