Chapter8: Strategic Analysis: Understanding A Firm’s Competitive Environment
Section: Chapter Questions
Problem 7CRQ: When does a firm have a competitive advantage over its rivals?
Related questions
Question
What does it mean for a firm to have a competitive advantage? What gives a firm a competitive advantage?
Expert Solution
Step 1
Companies use different strategies to be ahead of their competitors and sell products and services that are considered to be more valuable to customers than their rivals.
Companies try to create differentiation in their products to make them look different from the competitors or add some features or benefits to their products and services that are provided by the competitors.
Companies have to face intense competition in the market especially for similar products so they have to apply strategies in a way that customers prefer their products over the competitors.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.