17-05-2013, 11:54 AM
Competitive advantage
Competitive advantage.ppt (Size: 1.35 MB / Downloads: 22)
Definition
It is defined as the strategic advantage one business entity has over its rival entities within its competitive industry.
Achieving competitive advantage strengthens and positions a business better within the business environment.
5 Dimension of competitive Advantage
Product Advantage
Cost Advantage
Relationship Advantage
Structural Advantage
Knowledge Advantage
Product Advantage:-
An enterprise will gain product advantage if it is able to create a superior product value higher than competitors
Cost advantage:-
An enterprise will gain cost advantage if its cumulative operation cost are lower than competitors
Relationship Advantage:-
It is fundamental to establishing trust, which adds value in supporting an enterprise to secure its revenue and operations and to minimize transaction cost
Structural Advantage:-
It involve organizational system, relationship and communication in an organization.
Knowledge advantage :-
An enterprise will enjoy knowledge advantage if it has more knowledge than competitors.
There 3 types of knowledge that support the enterprise to take advantage over competitors are:-
Product Knowledge
Market Knowledge
Technical Knowledge