What is the competitive advantage?
competitive advantages are resources that allow the business entity to develop and maintain the advantage of competitors who produce similar goods and services. The competitive advantage differs from comparative advantage, as it often focuses on related strategies and skills and less on resources and final production costs. A competitive advantage may be achieved by a brilliant strategy for public contact, a unique way of manufacturing, or adding a certain advantage that exceeds the benefits offered by similar products on the market.
The purpose of finding a competitive advantage is to set up the company and its products as unique in a wide range of comparable goods and services. In this way, companies are able to create a loyal client base that will remain with them, although operating costs will need to increase the unit price of the product in question. In order to achieve this objective, the manufacturer must include and use some aspects of the product that will maintain and attract the consumer's attention.
A simple example of a product with a competitive advantage would be a fragrant bleach. There are a number of companies that produce bleach for home use, such as cleaning and washing clothes. However, companies that found a way to add a pleasant scent to the product were able to attract consumers who wanted a product that was effective and left behind a more pleasant scent. When they did it a step further, some bleach manufacturers were able to create unique fragrance mixtures and add to their bleaching products. This further distinguished them from their competitors and helped to ensure their share in the consumer market.
, along with the development of a unique advantage for the product, aggressive and attractive marketing campaigns, can help establish a company and its product line as highly desirable. Although similar products are equally good or perhaps even better in the main purpose of the product, a competitive advantage is achieved when it isPublic recognition higher. Many consumers will only buy products they consider to be brands. Successful marketing helps create a product as a brand, so it increases the chances that the consumer will buy the product instead of a competitor.
A competitive advantage is the process that draws on the collective skills, knowledge and strategies of the company. If it is successful, the effort to achieve a competitive advantage will result in a product that easily recognizes the public, has a certain advantage that distinguishes it from similar products and is available at the price that the consumer feels, is fair for the benefits of using the product.