Disadvantages Of Competitive Advantage In A Business

3. According to the Investopedia, “Competitive advantage is an advantage that a firm has over its competitors, allowing it

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

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.

They are given meaning in the minds of managers through processes of selective attention and simplification (Pfeffer and Salancik 1978). Otherwise managers could not possibly cope with the myriad of trends and events that must be organized, analyzed for patterns, and acted upon. Managers therefore adopt a customer-focused or competitor-centered perspective to help simplify their environment and decide what information is to be gathered and how it is to be screened and interpreted. Simplification comes at a cost, which is the risk that only a partial and biased picture of reality is created. A competitor-centered perspective leads to a preoccupation with costs and controllable activities that can be compared directly with corresponding activities of close rivals. Customer-focused approaches have the advantage of examining the full range of competitive choices in light of the customers ' needs and perceptions of superiority, but lack an obvious connection to activities and variables that are controlled by management. Clearly a balance of the two characteristic perspectives is needed. In practice most businesses tilt—in some cases very sharply—toward one or the other. A significant complication in the search for a balanced p>erspective is the confusing welter of overlapping meanings of "competitive advantage." Because there is no agreement on what elements to include or how they are related, information gaps cannot be identified. We address this

Most businesses strive to attain competitive advantage, whether they explicitly realize this or not. The concept of competitive advantage was propagated by Michael Porter, in his landmark book Competitive Strategy. He defined competitive advantage as “Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm 's cost of creating it.” (Porter, 1985) The concept provided a new paradigm for looking at the role of competition in firm’s success or failure in the long term. The succinct definition encapsulates number of related concepts that help firms identify and analyze their competitive advantage. In normal parlance, competitive advantage is described as the advantage a firm has that helps it get ahead of competitors or gain higher market share. Whether the management explicitly realizes this fact or not, they usually are focused on identifying and developing traits that help their firm get ahead of competition and have sustained growth in the long term. Many organizations that do not have strategic separate strategic thought process, try to attain the same advantage through micro decisions like product portfolio, cost cutting, pricing decisions, location selection, etc. However, their final objective is competitive advantage. Barney (1991) explained number of internal resource that help the firm in attaining competitive advantage in the long term. In this analysis, the author defines key terms related to competitive advantage, and

After advisors identify what their target market is, they must then define their competitive advantage. As we mentioned above, having a competitive advantage means having an advantage that puts them in a favorable business position. There are many ways advisors can achieve a competitive advantage, check out some effective ways:

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 .

Competitive advantage is that a company has better ability in earning profit and profit growth compared to its competitors for the same group of customers in one industry.

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)

Competitive advantage is the act of a firm being in a more favorable position in the market that its rivals when it comes to operation. McGrath(2013) stated that competitive advantage can be displayed regarding having affordable products or services and having quality product or service. Quality of service or quality is one way to which a firm can beat rivals in endearing itself into customers. Customers prefer consuming the best quality in the market, and the firm with the best quality makes more sales. Affordability of a product or service is another way a firm creates a favorable position among consumers. Customers prefer to purchase an affordable product or service where the substitutes presented to them are of the same quality. A firm with competitive advantage has a higher number of sales from repeat and new customers. The high quality and affordability make customers keep purchasing the product as new customers are attracted to the business at the expense of rivals.

They must also gain strategic advantage by positioning their offerings strongly against the competitors’ offerings in the minds of consumers. To plan effective competitive marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its products, prices, channels and promotion with those of close competitors. In this way the company can find areas of potential competitive advantage and disadvantage. Also, it can launch more effective marketing campaigns against its competitors and prepare stronger defenses against competitors’ actions.

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).

Competitive advantage is what makes an organization unique and perform better than others/ competitive advantage gives an organization edge over the others. It is a position that a firm occupies in a competitive landscape. A firm posse’s sustainable competitive advantage when it has a value creating processes and positions that cannot be duplicated or imitated by others firms.

*  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.