The Importance of Competitive Advantage in Turbulent Times

Success for any business is tricky in the current economy. For your business to remain viable, it has to weather the storms of competition. You have to be able to beat the ferocious market forces and overcome volatility. In other words, you need competitive advantage and it must be sustainable and able to endure the test of time Understanding your competitive advantage is critical to your survival. It is why you are in business. Keep in mind that what you do best is what draws customers to buy your product or service rather than those of your competitors. Gaining a sustainable competitive advantage is not as simple as just being different. Your competitive advantage is not a list of your strengths. Keep in mind that in todays market, too many companies: Have a competitive advantage but dont know what it is Know what their competitive advantage is but neglect to tell clients about it Dont have a competitive advantage but think they do Mistake strengths for competitive advantages Dont properly focus on their competitive advantages when making strategic and/or operational decisions Conclusion Sustainable competitive advantage allows for the maintenance and improvement of your companys competitive position in the market. It is an advantage that enables your business to survive against its competition over a long period of time. The advantage comes from your companys unique skills and resources working together to implement strategies tha t competitors cannot implement as effectively. Keep in mind that most advantages can be duplicated within a period of time. Approximately 70 percent of all new products can be duplicated within one year and 60 to 90 percent of process improvements eventually spreads to your competitors. Competitive advantage is a dynamic process that demands constant attention. It is NOT a once and done flavor of the month!

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To a large extent, the ambition of business strategy is to reach a sustainable competitive advantage.

Competitive advantage refers to the factors that differentiate an organization in the marketplace. These include price, unique product, manufacturing capacity, access to raw materials, technology and other factors that are difficult for competitors to replicate. Competitive advantage is important because it enables a firm to deal with competitive threats and sustain market share as a basis for maintaining long-term profitability. It also enables a firm to attract essential capital by achieving above-average performance for investors. http://www.ehow.com/info_8651871_important-gain-competitive-advantage-marketplace.html

2.4 Crearea i meninerea avantajelor competitive

Toate strategiile se adeveresc cu adevrat benefice pentru firm, cu condiia s fie stabilite judicios, implementate corect i urmate consecvent, numai dac creeaz i asigur meninerea n perspectiv a avantajelor competitive pentru firm. Aceste avantaje permit poziionarea tot mai bun a firmei pe piaa specific industriei n care opereaz i i mrete fora cu care nfrunt celelalte firme concurente. Avantajele competitive ale unei firme sunt extrem de diferite, putnd consta n: dimensiunea mare sau foarte mare a acesteia; oferirea de produse/servicii la cele mai mici preuri sau la cel mai nalt nivel calitativ; oferirea de produse/servicii adaptate cel mai bine cerinelor cumprtorilor; dominarea unui segment specific de pia (cuprinznd un grup specific de cumprtori, o anumit zon geografic etc.); oferirea unei valori globale ct mai mari pentru preul primit, aceasta reprezentnd o combinaie judicioas i deosebit de atractiv pentru cumprtor de calitate nalt, pre convenabil, service deosebit etc. Numitorul comun al tuturor avantajelor competitive menionate, indiferent de strategia urmat pentru dobndirea i meninerea lor, const n crearea unui segment viabil i suficient de mare de cumprtori care s fie interesat de achiziionarea produselor/serviciilor oferite de firm pentru c le percep ca avnd o valoare global superioar.

http://www.scribd.com/doc/24944831/Dezvoltarea-Firmei-Prin-CrestereaAvantajului-Competitiv CONTINUARE LA MAI SUS Evaluarea punctelor forte si a punctelor slabe din carte!! Managerii unei companii urmarind concurenta pot folosi analiza swat pentru crea avantajelor competitive...
Considering Strengths, Weaknesses, Opportunities and Threats In making use of SWOT Analysis, start with overall strengths and weaknesses, then find the best combination of relative strengths (and the absence of critical weaknesses) to use against specific competitors in specific markets. When developing a SWOT Analysis, either for yourself or a competitor, consider these points: Generally, even in most complex situation, there should be no more than 3-4 conclusions for each category of a SWOT. Both strengths and weaknesses are internal; they are within the direct control of the company Both opportunities and threats are usually external; they are outside the direct control of the company By definition, a key point for one category cannot be a key point for another category Strengths and weaknesses are relative and have limits. No strength or weakness applies against all competitors in all market situations. Comparing the Competitors SWOT Analysis to your own SWOT Analysis can help to identify true strengths and opportunities for you and the competition. For example, if your analysis identified the same strength for you and a key competitor, it is possible that it is not a strength for either of you but is actually a requirement for competing in this market. Be careful not to define a requirement such as this as a competitive advantage it is NOT!