COMPETITIVE ADVANTAGE FOCAL POINT OF STRATEGY Competitive Advantage can be

Competitive advantage focal point of strategy

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COMPETITIVE ADVANTAGE: FOCAL POINT OF STRATEGY Competitive Advantage can be defined as the ability of a firm to outperform its industry, that is, to earn higher rates of profits than the industry norm. And for a firm to achieve a competitive advantage, it must create more value for its customers than its competition. In the simplest terms, such a competitive advantage is based on excelling in providing one or more of three forms of customer value. Customers want goods and services which are i) better, ii) cheaper and iii) faster . These corresponding forms of competitive advantage are referred as 1) Differentiation, 2) Cost Leadership and 3) Quick response.
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COMPETITIVE ADVANTAGE: FOCAL POINT OF STRATEGY Differentiation Cost Leadership Quick Response Competitive Advantage Economic Value Added Market Value Added Competitiveness Financial Performance Value Created for Customers Value Captured for Investors
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Differentiation In pursuing CA based on differentiation , firms attempt to create unique bundles of products/ services that will be highly valued by customer . The activity focus is on R&D, higher quality material, advertising, Quality systems They are willing to pay premium price for the differentiated products and services as given below: Product features: A Product’s physical characteristics or capabilities may be an important form of differentiation e.g.
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  • Fall '14
  • AnushreeRoy

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