Competitive Advantage

English vocabulary used to talk about economics and business.
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Lee Jung Yun

Competitive Advantage

Post by Lee Jung Yun »

Competitive Advantage - Definition

when a firm sustains profits that exceed the average for its industry the firm is said to possess a competitive advantage over its rivals. The good of much of business strategy is to achieve a sustainable competitive advantage.

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

To survive in the competitive world, a business should have at least more than one competitive advantage. we call it strategic competitive advantage.
for example, even though one company improve their packaging skill, customers don't know the importance of the skill. In this situation, the skill can't be a strategic competitive advantage of the company. And if one company produces high quality products, and customers don't recognize. the company can't get a competitive advantage.
like I mentioned above there are three things in the strategic competitive advantages.
1. a business should improve the things customers regard as important thing.
2. a business should give the impression of its competitive advantages to customers.
3. a business should strengthen at the part other company can't reach easily.


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Kim young ju
Posts: 45
Joined: Mon Mar 21, 2005 9:06 am

Competitive Advantage

Post by Kim young ju »

Following on from his work analysing the competitive forces in an industry, Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage.
1.This sentence means that his work has the competitive forces in an industry,he suggested four "generic" business strategies that could be adopted in order to gain competitive advantage.
2.A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
3.http://www.tutor2u.net/business/strateg ... antage.htm
Competitive Strategies
In the end, it is a company's competitive advantage that allows it to earn extra returns for its stockholders.
1.This sentence means that it is a company's competitive advantage that
2.http://www.capatcolumbia.com/ValueBsdRsrch/competit.htm

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