Competitive Advantage

3449 Words Jul 30th, 2007 14 Pages
Competitive advantages are strengths and strategies that keep a company ahead of its competitors. It is hard to measure competitive advantage and harder to maintain it. Some competitive advantages are fleeting. The successful companies are those that leverage their competitive advantage successfully and repeatedly.
As understood by us in the above example the competitive advantage that the cyrptoses enjoy is a direct outcome of its natural habitat and hence the circumstantial gain over its rivals. Cryptoses has strategically positioned and tactically planned its competitive advantage that even though its fleeting, its competitive advantage is repetitive and successful. The other name for this sort of competitive advantage could be
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But nothing lasts for ever, as the market matures there are new entrants and it posses a threat to the competitive advantage. (fig. 2)
Gradually with the time competition starts meeting the customer expectations and the competitive advantage tends to reduce. Example - As the company that created the spreadsheet for PCs, Lotus led the way through much of the 1980s with its 1-2-3. But Lotus did not foresee the success that Windows would have and failed to develop a version of 1-2-3 for it until 1991. By then Microsoft 's Excel had moved in to dominate the market.
The duration of the competitive advantage is subjective, it depends on impact by the competitors affecting the source of competitive advantage. Microsoft Corporation is in a class by itself when it comes to exploiting the source for competitive advantage. IBM chose Microsoft in 1980 to write the operating system for its new personal computers. Microsoft produced DOS for IBM and then licensed it to more than 100 companies turning out IBM clones. Since it knew more than anyone else about the operating system for PCs, Microsoft had a head start on applications software like word-processing and spreadsheet programs. Over the years its applications programs became leaders. In the mid-1980s, Microsoft developed the Windows operating system, giving PCs some of the power and ease of use that had been associated with Apple computers. Microsoft

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