1. Introduction to the Report
The following report is prepared as part of the assignment 2 required for the module Strategic Marketing of the BSc Degree in Business Management from the University of Wales.
This report looks at the fundamental generic building blocks of competitive advantage and talks in detail about one of the major factors, which is superior efficiency. The report identifies what superior efficiency is and how it could benefit an organization in generating competitive advantage. Finally the report will evaluate the methods in which the company could achieve superior efficiency.
2. Generic Building Blocks of Competitive Advantage
According to Hill & Jones (2008), a business is said to enjoy competitive advantage when that business is able to generate a superior profitability than the average industry profitability and profit growth of the other companies in the same industry competing for the same set of customers. In simpler terms, a company is said to have competitive advantage when it enjoys greater profitability in comparison to its competitors. A company is able to generate such competitive advantage through developing its unique strengths and competencies, which the competitors in the market are unable to replicate. By focusing on these unique strengths and competencies, a company is able to significantly differentiate its offerings, or provide a significant cost benefit to
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These four generic building blocks of competitive advantage are superior efficiency, superior quality, superior innovation and superior customer responsiveness. These generic fundamentals enable the company to focus on its strengths and competencies and generate competitive advantage through either differentiation or cost leadership. The relationship between the generic building blocks and competitive advantage can be illustrated as
Course Description This course involves an integrated analysis of the role of marketing within the total organization. Specific attention is given to the analysis of factors affecting consumer behavior, the identification of marketing variables, the development and use of marketing strategies, and the discussion of international marketing issues. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be
2.Competitive Advantage – It includes the best product of an Organization in the competitive market.
Competitive advantage exists when a firm has strategy, product or an attribute that makes the firm capable of delivering similar benefit to that of competitors at a cheaper cost. Having competitive advantage is not enough the company should be capable of sustaining that particular competitive advantage for a longer period of time.
To survive and thrive, an organization must create a competitive advantage. A competitive advantage is a product or service that an organization’s customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage. In turn, organizations must develop a strategy based on a new competitive advantage.
A Competitive Advantage is a peculiarity for an organization between it's competitors . It's achieved either by lowering prices or by greatening the value of the product or by offering luxury service and benefits to cope with high prices .
1. What is competitive advantage, and how does it relate to a company’s business model?
Competitive advantage(CA) is an advantage competitors gain by providing or offering customers or consumers greater value for their money through product and service differentiation or through lower prices. Maintaining competitive advantage is crucial to many businesses or organizations' success in order to survive in the market. Competitive advantage is characterized by superior performance which could be an attribute to outperform the competitors whether current or potential; or gaining a higher market share in a particular industry thereby ensuring market leadership; or ultimately, maximization of profit.(JOBBER 2010)
This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice
I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. 2. This chapter describes the five basic competitive strategy option for building competitive advantage and delivering superior value to customers – which of the five to
Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).
In order to achieve competitive advantage, a firm must perform one or more value-creating activity that is more superior compared to other competitors. Superior value is created through lower costs or superior benefits to the buyers.
convenience of location’ (Queensland government, 2016). As Resource-based view (RBV) theory holds that the competitive advantage and superior performance
The generic strategy allows the firm to react to the five forces better than their competitors (Worthington & Britton, 2006). According to Porter (1985), an organization can enjoy competitive advantage by focusing on the generic competitive strategies. The organization could enjoy competitive edge by either offering the product at low cost or differentiating the product from the competitors or by focusing on a specific market. Porter (1985) emphasized that the generic strategies should be at the centre of the strategic plans.
* A competitive advantage is one that distinguishes a firm or a business from the competitors in the minds of the customers. It also refers to the state or condition that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful such as having a higher sales through offering low or affordable goods and services.
exists when the firm is able to deliver the same benefits as competitors but at a