Essay on Competitive Advantage Of A Company

1135 Words Jul 29th, 2016 null Page
Competitive advantage, in the view of a company, is defined as the level, or the degree of upper hand that one company has over the other companies of the same category. This type of advantage over the competitors of the company has various advantages for the company as it has the major effect of making the company a more preferred candidate for purchase by the clients in the line of sales that the company deals with. For example, there can be various companies selling the same kind of commodity; however, one of the companies might have a more favorable turnout of even as a result of competitive advantage; which might in the long run distinguish the degree of success that the two or more companies can have in their operations. There are various types of competitive advantage that exist in various companies; whether related or unrelated in their operations. Firstly, is the competitive advantage of companies that is based on the price of the commodities that the various companies deal with. In this consideration, one company can be able to produce products at a relatively cheaper cost as compared to another company. Thus, the prices that will be charged will obviously different, and the customers will prefer the cheaper commodity, thus forming the basis of competitive advantage in the market for the goods. Moreover, competitive advantage can arise as a result of product differentiation; whereby the commodities that are sold by the companies are differentiated in various…

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