What Are The 6 Factors Of Competitive Advantage?

What are the factors of competitive advantage?

Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service..

What are the 5 areas of competitive advantage?

5 areas to drive competitive advantageMARKETING. How can your marketing team make claims about your product and the ability to deliver it without knowing the capabilities of your supply chain? … FINANCE. Here are two departments which ought to be so close their husbands and wives start to get jealous. … HUMAN RESOURCES. … LEGAL. … CUSTOMER SERVICE.

What are some examples of competitive advantage?

Examples of Competitive AdvantageAccess to natural resources that are restricted from competitors.Highly skilled labor.A unique geographic location.Access to new or proprietary technology. … Ability to manufacture products at the lowest cost.Brand image recognition.

What is Porter’s definition of competitive advantage?

Competitive advantage is the leverage a business has over its competitors. … Michael Porter defined the two ways in which an organization can achieve competitive advantage over its rivals: cost advantage and differentiation advantage.

What are the three basic types of competitive advantage?

There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies.

What are competitive factors?

A competitive factor is a feature or benefit considered key or essential to the promotion of a product or service to its intended market. Because it is perceived as valuable by the customer it is a value element used to attract buyers. … Competitive factors usually include price.

What is Coca Cola’s competitive advantage?

Coca Cola has competitive advantage so it is making it get bigger and bigger in terms of sales and market share. Coca Cola reputation has also competitive advantage and it is also pursuing environmental friendly product. Coca Cola many products are recyclable and Coca Cola is also going for the green effect.

How do you identify a competitive advantage?

To find a lasting competitive advantage, look for something that your competitors cannot easily replicate or imitate. Competitive advantages can be found almost anywhere. Some restaurants thrive because of their location.

What are building blocks of competitive advantage?

The four building blocks of competitive advantage are superior efficiency, quality, innovation, and customer responsiveness (Hill & Jones, 2009; Hill et al., 2016). These building blocks allow a company to differentiate its product offerings to provide more utility to customers and/or lower its cost structure.