Thursday, May 10, 2012

Building sustainable competitive Advantages.

Building sustainable competitive Advantages.
Competitive advantages means pulps point or strength of a company. Every company wants to build its strength for long term period.
Competitive advantages could be gain through low cost, product differentiation, speed (work) and market focus.

Evaluating and choosing business strategies:
It means seeking sustained competitive advantages.
Sustained competitive advantages could be seek from 2 main sources.
  • Business Cost
  • Ability to differentiation
a) Evaluating cost leadership opportunities.
It means ability of a business to produce its product or services at a cost below.

  • Less price competition.
  • Discourage new entrance.
  • Less the attractiveness of substitute products.
b) Evaluating Differentiation opportunities.
It means ability of a business to produce differentiate products.

  • It reduce competition.
  • Buyers are less sensitive to price for differentiated products.
  • Brand loyalty for new differentiated products
c) Evaluation Market focus as a way to competitive Advantage.

1) Push customer to buy goods
2) To provide new feature products.
3) New ways adopted to attract customer.

d) Evaluating speed as a competitive advantage.
Speed is another source to gain competitive advantage.

  • customer responsiveness (quick response by circulating period firstly)
  • product development cycle (new product, ideas screening etc)
  • speed in delivery or distribution.


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