Competitive Advantage Essay

3453 Words Dec 9th, 2015 14 Pages
WEMC FS#5-08

Strategies for Competitive Advantage
Cole Ehmke, M.S.
Extension Educator, Department of Agricultural and Applied Economics
University of Wyoming

Overview
A competitive advantage is an advantage gained over competitors by offering customers
greater value, either through lower prices or by providing additional benefits and service that
justify similar, or possibly higher, prices. For growers and producers involved in niche
marketing, finding and nurturing a competitive advantage can mean increased profit and a
venture that is sustainable and successful over the long term. This fact sheet looks at what
defines competitive advantage and discusses strategies to consider when building a competitive
advantage, as well as ways to
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With the advent of product differentiation and niche and direct marketing, that reality has
changed, and now there are niche markets in which both individual and wholesale buyers are
looking for products with very specific characteristics or special services. These characteristics
often use strategies that don’t focus on costs and volumes exclusively; rather the product or
service may be of premium quality, be differentiated from other products and services available
in the market (such as organic, natural, or humane production), or have a value-added component
(i.e. flavored meats, pre-washed salad mixes, etc.).
Successful ventures perform a combination of business activities well, including marketing,
production, distribution, finance, customer service, and/or other activities important to the
enterprise. However, a competitive advantage is often a single key element that gives an edge to
a business beyond what the competition has or does.

5-1

1. The experience and skills of the top managers. Over half of business failures are directly related to
managerial incompetence.
2. Energy, persistence and resourcefulness (the will to make the business succeed) of the top
managers. Many business owners have failed or come close several times before their “instant”…

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