What is Competitive Advantage?
Competitive advantage is the condition that can allow a company or business to outperform its competitors in the market (Huang & Lee, 2012). Companies look to gain competitive advantage with an aim to acquire a larger market share and thus remain superior to all competitors. Once a company can have the conditions necessary, it becomes easier to generate sales and maintain an edge over its competitors.
How do Firms build Competitive Advantage? Companies gain competitive advantage through looking at the following factors; First, most companies fail to provide their customers with what they need. Customers remain loyal to brands that can understand their needs and provide them with what they want. Understanding the customers is thus the first step towards building a competitive advantage. It will help sell the right products to the right customers thus …show more content…
A company can form a partnership with a giant in the market to increase its brand visibility and presence in the market (Yadav, Han, & Kim, 2017). For example, the merger between Wholefoods and Amazon created a competitive advantage for Wholefoods since its market broadened. Merger deals and partnerships thus help companies gain competitive advantage not only due to the larger market but also the presence of sufficient resources.
Competitive advantage can be gained by focus on having better services at the firm. For example, the company can put focus on having better services such as good customer service and quality products (Daniela, 2014). The company can thus focus on hiring employees who are qualified and talented. Apart from that, employees should also be able to meet the market needs by embracing the power of innovations. Innovations help build better products and services. Excellent services will therefore help in gaining an edge in the
Competitive advantage is the condition that can allow a company or business to outperform its competitors in the market (Huang & Lee, 2012). Companies look to gain competitive advantage with an aim to acquire a larger market share and thus remain superior to all competitors. Once a company can have the conditions necessary, it becomes easier to generate sales and maintain an edge over its competitors.
How do Firms build Competitive Advantage? Companies gain competitive advantage through looking at the following factors; First, most companies fail to provide their customers with what they need. Customers remain loyal to brands that can understand their needs and provide them with what they want. Understanding the customers is thus the first step towards building a competitive advantage. It will help sell the right products to the right customers thus …show more content…
A company can form a partnership with a giant in the market to increase its brand visibility and presence in the market (Yadav, Han, & Kim, 2017). For example, the merger between Wholefoods and Amazon created a competitive advantage for Wholefoods since its market broadened. Merger deals and partnerships thus help companies gain competitive advantage not only due to the larger market but also the presence of sufficient resources.
Competitive advantage can be gained by focus on having better services at the firm. For example, the company can put focus on having better services such as good customer service and quality products (Daniela, 2014). The company can thus focus on hiring employees who are qualified and talented. Apart from that, employees should also be able to meet the market needs by embracing the power of innovations. Innovations help build better products and services. Excellent services will therefore help in gaining an edge in the