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Competitive advantage is a situation that allows a company to produce goods at a lower price for customers. It also allows a country to produce goods at a lower price. It helps in the production of sales more than its competition. Since many years competitive advantage has been introduced in business world.Various factors assigning competitive advantage include quality of product offerings, brand structure, customer support, and intellectual property. In simpler words, competitive advantage is a position higher than its competition.Its extent in a firm is determined by the extent of superiority. A company may achieve competitive advantage by two ways; they are- by means of external changes and by developing them inside the company. PEST (Political, Economic, Social and Technological) factor is included in external changes. Three determinants of competitive advantage are- Benefit, Target market and competition. Students looking for various topics regarding competitive advantage can refer Competitive Advantage Assignment Help where it has been described thoroughly.
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Different Types of Competitive Advantage
According to Porter, there are two basic types of competitive advantage- cost competitive advantage and differentiation competitive advantage. These two advantages are also known as positional advantages. It is called so because it determines the firm’s position in the industry. The different types of competitive advantages explained in Competitive Advantage Assignment Help are
• Cost competitive advantage – Cost competitive advantage is a type of competitive advantage which means that a company is able to supply goods and services at a price lower than its competitors. When the company has a lower cost of doing business then only it can attain this position. Walmart is one of the best known companies that utilize competitive advantage. Many different ways are used to keep the costs at minimum. Cost effective products can be created by product designing and re engineering. Competitive Advantage Assignment Help provides a detailed explanation of all the factors related to cost competitive advantage.
• Differentiation Competitive advantage – Differentiation competitive advantage is a second major type of competitive advantage. It is created when a company’s product differs from its competition’s product and is usually superior to it. It is central to segmentation as it gives customers a reason to prefer one product over another. It allows multiple products to coexist. A company can achieve it by providing new, unique and authentic products. One of the best examples of differential type of competitive advantage is BMW. Understanding competitive advantage can be tough for someone new to it. So, Competitive Advantage Assignment Help works the details of the different types of competitive advantages used in it for a crystal clear growth of concept.
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