What Is Competitive Advantage Commerce Essay

Published:

Competitive advantage -is a velocity that can be perceived as an advantage that a company has compared to its competitors. However, there are different schools of thought that explain the competitive advantage. In economics, the term competitive advantage is used of the prominence of an actor on the market over its competitors in the economic competition, as stated in Competitive advantage.

In a more technical meaning, it can be also said that the competitive advantage is the occurrence of levels of economic performance above the industry average according to the strategies adopted by firms. Some of the theories that have been linked to the explanation of competitive advantage are the strategic positioning, resource theory, theories based on market processes and theories of dynamic capability.

With the clear linkage to most of these theories, it can be stated that the competitive advantage usually stems from a core competency of business. And to be really effective, the advantage must be: difficult to imitate, single, sustainable, superior to the competition and

Lady using a tablet
Lady using a tablet

Professional

Essay Writers

Lady Using Tablet

Get your grade
or your money back

using our Essay Writing Service!

Essay Writing Service

applicable to multiple situations.

In marketing and strategic management, competitive advantage is an advantage that a company has over other competing companies. To be truly effective, an advantage should be:

difficult to match, possible to maintain, clearly above the competition and applicable to various market situations. Examples of characteristics of company that can provide a competitive advantage: customer orientation, superior product quality, distribution contracts, accumulated brand value and reputation of the company, being the producer of goods and services cheaper, and also offering a differentiated product or enforce any of the above two strategies in a specific market segment. As well, possession of patents and copyrights, government-protected monopoly and highly qualified professional team are the successful characteristic that can be considered advantage.

As a fact, the list of potential competitive advantages is long. However, some people think that by changing market there are no truly competitive advantages that can be sustained for long. It is said that the only long-distance competitive advantage is that a company can be alerted and be as agile as to always find an advantage no matter what may happen, as described in Competitive Advantage: Introduction. Competitive Advantage is affecting contemporary public personnel administration, as the competitiveness changes the situation and there are not many competitive advantages that the public personnel administration can use.

The competitive advantage can be divided into a provider of a benefit that is generated within the company (for example, lower production costs, leading to higher profits) and a customer benefit that the company is on the market. The provider benefits can be divided into revenue advantage (increase the sale price, such as image benefits) and cost advantage (lower production costs). The customer benefit can be further subdivided in a benefit advantage (better products) and a cost advantage (lower price), as described in Competitive Advantage. Some of the most important work on the strategic development and use of competitive advantages (competitive strategy) are by Michael E. Porter. He has the concept of competitive advantage in an empirically based analysis (The Competitive Advantage of Nations), are also in regions and countries, thus the slogan international competitiveness is given a scientific underpinning.

Some fear that a competitive advantage is too neat and too lasting favors oligopolies and monopolies that limit competition and end up weighing on the consumer. However an advantage of this kind is achieved, and may be particularly threatened by drying up of resources, technological breakthroughs, economic shocks and political upheaval in consumption patterns, and changes in legal provisions, often intended to restore competition (antitrust laws).

Moreover, even if a group of people, territory, country has a sustainable competitive advantage, or even several sustainable competitive advantages in different fields, the theory of comparative advantage shows that all parties (that to say both those who have the advantages that those who do not have) are almost always an advantage to trade with each other, so that the existence of competitive advantage does not justify the introduction of protectionist measures to safeguard the interests of consumers, as stated in Is knowledge the ultimate competitive advantage?

There are scholars who argue that in a fast changing competitive world, none of these advantages can be sustained over the long term. They argue that the only sustainable competitive advantage is to build a company that is so alert and agile than in any case will find an advantage, no matter what changes occur.

Lady using a tablet
Lady using a tablet

Comprehensive

Writing Services

Lady Using Tablet

Plagiarism-free
Always on Time

Marked to Standard

Order Now

The competitive advantage of the partially loses value can be easily reproduced by rival companies. Management must develop strategies for its conservation by creating barriers to entry: the high cost of capital, scarcity of raw materials, economy of scale, favorable location, patents and licenses. The two most common "security barrier" - the benefits associated with owning the trademarks, and core business the company's ability in its chosen field of activity, which serves as a foundation for organizational effectiveness of the firm. High reputation of the brand, acquired by it during a long and successful use of the product creates a feeling of consumer confidence in the correctness of the choice of goods and suppliers, and buyers of "Seven times measure" before it is decided to break off relations with "a proven friend." Basic business skills, the competence of the company - are the specialized technical and marketing skills, allowing the company to constantly upgrade the products, to innovate and improve its proposed customers' perceived value of goods and services. Education, change and continuous improvements allow the company to maintain a competitive advantage. That is why it is essential to remember to the public personal administration.

Strategic management is designed to ensure company survival in the long term. Of course, when it comes to survival in the market's competitive environment, there is no question that the firm can eke out a miserable existence.  Therefore, survival in the long term automatically means that the firm is successfully enough to meet its objectives by bringing their work satisfaction to those who fall within the scope of its business interaction. In particular this applies to customers, employees and its owners.

How to attract and keep in the corporation responsible, efficient, highly skilled and talented people? To solve this problem personnel managers have to work on it, who should be in the corporation as a "catalyst" in the multidimensional and long-term staffing processes, providing competitive advantages to the firm due to the unique human capacity and a high level of responsibility of all its employees. Corporate culture creates responsibility, and people's ability to create competitive advantages. Therefore, the personnel manager has to solve two strategic objectives:

- first, to create a competitive advantage by improving the firm's level of responsibility of its employees, through the management of corporate culture. Strong corporate culture can attract and retain talent, and the fruits of their labor creates a high reputation of a company, attracts new customers and highly skilled workers. Updating and continuous adaptation of the corporate culture to a dynamic external environment is aimed at improving the quality of working conditions, providing feedback to employees and consumers. That includes conducted seminars, forums, focus groups, roundtables and promotional campaigns. Involving employees in the marketing activities of the corporation contributes to their initiative and the level of professional self-esteem;

- second, to provide a competitive advantage the company by increasing its human potential, fully contributing to the growth of professional competence. No matter how attractive would be the corporate culture, but the gap between the demands of the global market and the potential of the organization can be eliminated mainly through the development of professional skills and abilities of the entire staff of the corporation. Development of human capabilities, the concentration of the level of professional competence of employees becomes a leitmotif of the activity not only of personnel services, but also of line managers. At the same time, some companies include the issues of improving the level of staff competence in the part of any strategy being developed by others - considering this issue as an opportunity to implement a special initiative strategy, which complements the other competitive strategies of corporations.

All in all, there are many factors that affect contemporary public personnel administration, including the competitive advantage. Consequently, there have to be taken measures of modernization and update of the different areas of activities to be competitive and to have certain advantages in comparison with others. In any case, success depends on how carefully on the basis of diagnostic is conducted by personnel specialists and line managers, which will contribute to the creation of individual development plans that are designed to eliminate the gap, formed between the growing professional requirements (not standardized) and existing level of competence of each employee.

Lady using a tablet
Lady using a tablet

This Essay is

a Student's Work

Lady Using Tablet

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Examples of our work