Competitive Advantage And Competitive Strategy

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COMPETITIVE ADVANTAGE If a value creating strategy is implemented by an Organization and it is not being implemented at the same time by another organization, one can say the organization has a competitive advantage over its competitors. It is imperative for a firm to choose the height of competitive advantage it wants to attain in the industry. An organization must aim to initiate a profitable and sustainable spot against your competitors in the same industry. WHAT IS COMPETITIVE STRATEGY? Competitive strategies are long term plans/steps by which an organization achieves a competitive advantage in the market over its rivals.…show more content…
If a firm possesses high skilled Human Resource that can successfully implement this strategy, it will reduce price sensitivity and improve brand loyalty from consumers. For example, iPhone is so different that even a 5 year old can differentiate it from other phones; its uniqueness is second to none, which makes it hard for their competitors to overrun them in the market. This strategy focuses on creating uniqueness such that a firm’s product and services are clearly differentiated from its rivals. Innovation and creativity is the primary focus of this strategy and this has long been identified as the necessary ingredients to obtaining a competitive advantage. FOCUS STRATEGY Focus strategy is a competitive strategy that selects a segment or group of segments in an industry and focuses its strategy to serving them only. Focus strategy recognizes that selling to a homogenous customer group may not be very effective for the product and services of the firm. Instead they focus its marketing efforts on a selected market segments. They identify the needs, wants and interests of the particular market segments and customize marketing techniques to reflect those needs, wants and interests. The above competitive strategies (Cost Leadership strategy, Differentiation strategy and Focus strategy) can only take place in
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