Question

QUESTION 3 Explain the concept of competitive advantage." Thereafter, provide examples in international commerce.

Answer 1

Competitive advantage refers to the advantage of earning a profit that an organization gains while selling at lower prices or providing greater customer values at higher prices than its competitors. In a competition, the marketer can earn by differentiating itself in any means. He can sell at less price and have a big market share and have a competitive advantage as competitors are not doing so. Or he can offer high customer value that rivalry firms are not giving at higher prices.

In international commerce, the marketer has a great opportunity to take this advantage, as many competitors are there in the market and marketer through SWOT analysis can see for opportunities and grab them as soon as possible.