INFORMATION AND COMMUNICATION UNIVERSITYOPEN DISTANCE LEARNING UNITSTUDENT NO.:1705181836STUDENT NAME: LINDA MOKOLAPROGRAM:BACHELOROFHUMANRESOURCEMANAGEMENTCOURSETITLE:ENTREPRENEURSHIPCOURSE CODE:LECTURER’S NAME:MRS EUPHRASIA N. MUKWASAASSIGNMENT NO:1DUE DATE:30thAPRIL, 2019TABLE OF CONTENTSPAGE1
1.0QUESTION2.0COMPETITIVE ADVANTAGE3.0INTRODUCTION4.0DEFINITION5.0THE IMPORTANCE OF COMPETITIVE ADVANTAGE6.0TYPES OF COMPETITIVE ADVANTAGE87.0SUMMARY8.0REFERENCES10QUESTIONExplain why a small business must create competitive advantage in the market.333469COMPETITIVE ADVANTAGEINTRODUCTIONDeveloping competitive advantage can be considered a critical success factor for a smallor new, emerging business venture. For a competitive advantage to be successful,entrepreneurs need to develop a competitive advantage that can be sustainable over a2
period of time. By and large, entrepreneurs should not expect the business community towelcome the new business with open arms; instead, savvy competitors will likely defendagainst the new business venture to prevent their stealing market share from them. Thiscan often be observed in situations where market growth stalls, and prevents new marketentrants from entering and gaining market share without opposition. The market entrystage could be the first critical stage for developing effective competitive advantage andcontinues to be important all the way through the business life cycle. Successful marketpenetration requires that new entrants develop a sound strategy that can serve as an entrywedge, allowing the new business venture to successfully penetrate the market and winenough market share to ensure that the business will be earn a profit and becomesuccessful. Strategy grounded on generating a sustainable competitive advantage mightprovide a new business with that entry wedge, therefore helping to establish the newbusiness in the marketplace.DEFINITIONA superiority gained by an organization when it can provide the same value as itscompetitors but at a lower price, or can charge higher prices by providing greater valuethrough differentiation. Competitive advantage results from matching core competenciesto the opportunities. A competitive advantage is what makes an entity's goods orservices superior to all of a customer's other choices. The term is commonly used forbusinesses. The strategies work for any organization, country, or individual in acompetitive environment.To create a competitive advantage, you've got to be clear about these three determinants.1.Benefit.What is the real benefit your product provides? It must be something thatyour customerstrulyneed. it must also offerrealvalue. You must know yourproduct's features, its advantages, and how they benefit your customers. You muststay up to date on the new trends that affect your product. This includes newtechnology. For example, newspapers were slow to respond to the availability offree news on the internet. They thought people were willing to pay for newsdelivered on a piece of paper once a day.
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