ipl-logo

The Pros And Cons Of Competitive Advantage

818 Words4 Pages

Competitive advantage is a term used in the business warzone between commonly large companies that compete to obtain the highest costumer population for their business fields. Competitive advantage is literally an advantage that a company or an organization possesses which enables it to shine brighter than the other competitors in the competition; it is what makes your business unique in comparison to the others. The question now is how? How can you acquire a competitive advantage in the global market? To answer this question, you must first be familiar with three major determinants of acquiring competitive advantage: what to produce, for whom, and with whom you are competing. First of all, it is the most important element of success to know …show more content…

One way to get competitive advantage is through Cost Leadership. This means that one can gain advantage by simply selling a product or a service at a reasonably low price, a price that you can handle. Information System can help a business gain this advantage easily. As Dr-Othman Alsalloum , who Working at King Saud University, stated, “Use information systems to achieve the lowest operational costs and the lowest prices.” Wal-Mart is an example of this competitive advantage; it has lower prices than any other market. The reason behind this is that they use Information Systems to maintain efficiency in their supply chain. “WalMart applies the most reliable supply chain management system which is very efficient because almost all product data can be tracked to and from the manufacturer, warehouse, and the store shelf. Efficiency in supply chain system may save WalMart several million dollars as it can prevent losses from faulty product management.” Another way to get competitive Advantage is through something called Differentiation. This simply means obtaining Competitive Advantage through having different products or

Open Document