Question

discuss concepts of sustainable completive advantage. Use the concept to explain a company's strategy, marketing message, bargaining power, profit strategy and other related decision necessary to be a successful enterprise

Answer 1

Sustainable Completive Advantage:-

With rising competition, as a result of the rapid globalization that has taken place across the globe, most companies have wanted to offer the consumers a product which is significantly different from the competitors and which cannot be replicated owing to the fact, that there exists law against duplication of the same.

Sustainable Completive Advantage refers to a company’s assets, distinctive attributes, or abilities that help in segregating this from the competitors and give the company an edge to sell its products to the customers in a better way and manner.

This strategy takes place because of the following reasons:-

• Low Prices of Products as compared to competition (Example Walmart as a company offers this strategy).
• Brand Power ( Example Apple)
• Barriers To Entry ( Government Rules not permitting entry into the aviation industry is a prime example since the total number of aviation companies is relatively limited)
• Product Differentiation ( Example Tesla Motors and its electric cars have no other alternative)
• Strong Financial Status( Again Example Apple it can easily change its policies because of the piling up of capital)

Use the concept to explain a company's strategy, marketing message, bargaining power, profit strategy and other related decision necessary to be a successful enterprise

All of the listed terms such as company’s strategy, marketing message, bargaining power, and profit strategy are core of gaining completive advantage over competition.

All companies today, want to achieve this by having superior power of the competition which gives an edge to the consumers over others. Further a company by having such a strategy can get and help in retaining more customers over a period of time.

Take a simple example of Apple. The company’s strategy to have superior products in its lineup, a marketing message that clearly delivers the distinctive difference, the superior bargaining power with suppliers of raw materials and the profit strategy wherein it creates such high brand value that the customer willingly pays more for the product, is a clear example of sustainable completive advantage.

Over the years, companies must establish themselves as distinctive entities to enable themselves at retaining customers while at the same time also earning sufficient market share by dealing with competition. All of the above listed strategies must therefore go hand in hand and allow for easier profit accumulation for a business enterprise.

Please feel free to ask your doubts in the comments section