Competitive Advantage

I believe that the United States has opportunities that will help increase the national competitive advantage that it has over other countries in the world because the United States is finding ways to manufacture goods at a high rate to satisfy the needs of the consumer. I find that businesses such as Honda and Toyota have to compete at a high level in order to attract the services of the consumer who is looking to buy a new car that they feel they are wanting to have for a long while. They will usually innovate with new car models that will necessarily have new features that the predecessor before it didn't have and will be able to negotiate a deal with the consumer to buy it. I find that companies will use under-handed techiques to try and

The company markets its unique products to youth markets which it feels are underrepresented and inadequately reached by its competitors. The company uses innovative and creative, and it effectively set Jones Soda apart from the competition. By allowing consumers to assist in package design, Jones Soda became a brand that concerned itself more with the consumer than with the actual product. This has made consumers feel more relevant, has given them a sense of ownership over the brand, and has encouraged customer loyalty. Due the field is so competitive with several ways to stay competitive in their designated field. Through distribution, brand name, brand image, price, labeling and packaging, advertising, quality of the beverage, and new ideas they have accomplished this. Jones Soda competes for customer appreciation, retail shelf space and for marketing focus by their distributors, who also distribute other beverage brands. Jones Soda currently distributes their products in several retail outlets. These outlets include Barnes and Noble, Panera Bread Company, Cost Plus World Markets, Starbucks and Target Corporation. As well as these mature locations, Jones Soda also distributes to other independent vendors.

Last week our group researched and discussed two companies that have many competitive advantages in common with Riordan Manufacturing. After discussing, we decided that the commonalities could all be related to one of three main advantages. Theses advantages are:

In this 21st century you rarely see monopoly situation in the business field. Competition helps to expand the business and create better quality as business always focus on creating a unique product or service for customers.

This paper explores the “application of theory of comparative advantage in Vietnam’s export and import and the gain and loss of the economy in trade”.

 Supplier power in the Five Forces Model is high when buyers have few choices to buy from and low when they have many choices. Supplier power is the converse of buyer power. Again, there are two situations in the supply chain where organizations need to be concerned: i) in their relationships with customers; and ii) in their relationships with suppliers. Regarding the relationships with customers, organizations function as suppliers and thus want supplier power to be high. With respect to the relationships with suppliers, organizations function as buyers and therefore want supplier power to be low (see Figure 1.14).

The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.

1. What is competitive advantage, and how does it relate to a company’s business model?

Once the company achieves the competitive advantage, the company should sustain it by development and improvement because the most of any the competitive advantage can be imitate. The company when the gain competitive advantage that can become the global in the market and successful. Any the countries are make policies and politics to the create and sustaining the competitive advantage. Also, each the country have different policies and politics of the trade. The Oman country has strong trade in the global of the market. The Oman country makes many the policies to protect and sustaining the competitive advantage in the market such as, rules of the suppliers, antitrust and competition policy, export control and rules of the foreign direct investment.

“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).

The purpose of this essay is to provide a comprehensive understanding of the competitive advantage concept and its challenging issues that are important for every firm to operate effectively and efficiently. This paper also outlines and discusses the theoretical of achieving sustainable competitive advantage within an organization and the viewpoint of this concept to the modern competitive environment. Competitive advantage, which has two main types: cost leadership and differentiation, helps firms survive and develop through the competition in any commerce. However, the competitive advantage does not last forever, particularly in the current period with the increased improvement of technologies and communications. Moreover, the future of an organization is determined by its abilities to achieve and sustain competitive advantage. It is obviously a difficult position for dealing with challenges commencing from the concept. This essay will first consist of the theoretical frames of competitive advantage concept and its importance. The second part involves the issue of achieving and sustaining the competitive advantage. The last part is to give suggestions on the viewpoint of the extent to which competitive advantage is still relevant to the modern competitive environment. The methodology applied in this essay is the using of the previously published research papers to support the raising ideas.

“Competitive advantage literally is the ability to sustain profits that exceed the average for the industry through developing distinctive competencies: distinctive, because the competitors don’t have them and because they are fundamentally difficult to replicate” (Berry, 2012). Competitive advantage through people is critical for a business to succeed. Without people, businesses would lack the ability to have the innovations to differentiate their products or services from their contenders in the same field of interest. People are critical from in developing and producing the product or service for the company to drive customer satisfaction.

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

Another important part of the strategic business planning process is the external analysis, in other words looking at the external environment. This incorporates a STEPP profile, an industry profile and competitor profiles. In relation to the environment you need to look at what the opportunities and threats to your business are. What factors could pose a threat to your business? Where are their gaps in the market that you could fill?

Thus, reading the newspaper, pay close attention to your lawmakers are doing is very important. What might happen, to respond to government forces, which can greatly affect your business?