COMPETITIVE ADVANTAGE
MAHESHWARI 1321739
Competitive advantage exists when a firm has strategy, product or an attribute that makes the firm capable of delivering similar benefit to the customers, that of the competitors at a cheaper cost. Having a competitive advantage is not enough the company should be capable of sustaining that particular competitive advantage for a longer period of time.
Sustainable competitive advantage:
A company or an organization can create competitive advantage only when it is able to distinguish itself from the rivals by implementing a value creating strategy over a longer period of time. It is said to have a sustainable competitive advantage when other rival firms are unable to duplicate the value creating strategy of the firm which has led to the achievement of sustainable competitive advantage.
On the other hand, we can say it is not the strategy that has been with the firm over a long period of time, which determines the existence of the sustainable competitive advantage, but it is the inability of the other present and the potential competitor firm to duplicate the strategy because of which there is existence of sustainable competitive advantage. Sustainable competitive advantage in Retail industry:
1. CUSTOMER ORIENTATION STRATEGY: Gaining customer loyalty is one of the ways to sustain competitive advantage. This can be done through by providing good quality of products at lower cost. Some other ways to build customer loyalty to have a
1. In the broader context (not specific to Dollar General), what is KKR’s investment strategy? What are the challenges KKR will encounter to make its investment in Dollar General successful? How could KKR add value to Dollar General?
On the other end they have a high threat because their competitors could take a new direction into performance outdoor apparel. Columbia focuses on innovative ideas and the quality of their products to differentiate them in the competition.
FOUR CRITERIA OF SUSTAINABLE COMPETITIVE ADVANTAGE
Not every capability is a core competence, although every core competence is a capability. In order for a capability to be a core competence it must possess the four core competencies.
According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. TJ is
Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the company’s strategy.
Recommendations and
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage?
The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
Bark & Co. is a company founded by Matt Meeker, Henrik Werdelin and Carly Strife. The company owns several products – the initial and probably best known is ‘BarkBox’. Due to BarkBox’s success, the company Bark & Co. was created, which dedicates to build products that promote health and happiness of dogs everywhere (BarkShop, 2014). It was launched in December 2011 and had reached $25M in revenue by June 2013 with 100,000 subscribers (Fueled, 2013).
Like illustrated in Figure 2, Bark & Co. has different businesses: ‘BarkPost’ is a dog content website that has the capability of receiving over 400,000 visitors monthly, ‘BarkCare’ is a dog health mobile application that can be reached 24 hours 7 days a week for vet consultation service (D’Onfro,
Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. There are three types of competitive advantage.
a) Cost leadership strategy occurs when a firm a delivers the same services as its rivals but at a lower price.
b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals.
c) Focus strategy is a focused approach requires the firm to concentrate along one specific segment either a cost leadership or a specialization strategy.
Tesco’s Ownership
Tesco’s ownership is a PLC which means Public limited company. Because of this Tesco can easily expand and therefore go global, this is because, if they are a PLC then anyone from around the world can buy shares in that company, thus meaning that Tesco has more capital to invest In their company or other branches around the world, this also causes them to be global.
Advantage
One of the major advantages of Tesco being a public limited company is the fact that they would have a good status; this is because shareholders would want more dividend/yield from their shares and so they would be spreading the word about Tesco, in addition to this, the more shares people buy the more capital Tesco has to invest in their company to expand it and create other branches.
Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.
In 1985, Harvard Business School Professor Michael Porter published his new book “The Competitive Advantage” which focuses the organisation internal environment. In this book, along with an in depth analysis of the competitive strategies which are Cost leadership, differentiation and Focus, he also concentrates on the firm’s value chain.
1. Cost Leadership: In cost leadership, an organisation aims to become the low cost provider in its industry. Examples are Aldi, Lidl, Ryan Air etc
2.
Competitive advantage is a set of unique attributes of a nation. It is an advantage, capability, ability, strategy, that a nation or state or country has and enabling it to generate or produce or make more sales, profit, money, income and revenue and enables it to attract and retain more investors than other nations (competitors). It also puts a state in a profitable and superior strategic business position in the global markets (OU, 2010).
The above figure: the determinants of national competitive advantage of Porter (OU, 2010).
COST STRUCTURE OF SAMSUNG
Low cost structure of Samsung and high responsiveness to economic events has made Samsung more competitive. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months.
Under the resources-based view of strategic management, effective resources available to a firm, as well as the competency of a firm is responsible in affecting competitive advantage received by a firm.
Mr Price has a wide range of competitors such as H&M, Woolworths and Pick ‘n Pay. A competitive advantage describes how the business has benefits or strengths over its competitors in the market. By having this, the competitors don’t seem as a threat to the company. It’s used
Customers will be a loyal customer if their opinions and needs are met by a company. I believe this is the most important building block. I have worked as a manager of a retail card and gift store in Wantagh for the past five years. Throughout my five years, I take great pride in the customers that shop with us. If there is something that I can do to help my customers or order them a certain product, I don’t hesitate.
