Competitive Advantage Essay - 2202 Words

Corporate Strategy Sources of competitive advantage rarely yield added value that can be sustained over time. The following essay is going to attempt to assess the above proposition and try to find if it is possible to add value continually over a period of time. I will first discuss what competitive advantage is and what it means to a firm. Then I will explain the sources of competitive advantage and how the distinctive capabilities of a firm allow it to sustain added value. The discussion is based on a number of viewpoints from different authors who will be clearly indicated and acknowledged. I begin with explaining what competitive advantage is. So, what is Competitive Advantage? In a number of industries, the average†¦show more content†¦Kay (1995) points out, Architecture depends on the ability of the firm to build and sustain long term relationships...it is easier to sustain architecture than to set out to create it. More than the other sources of competitive advantage, the sustainability of architecture rests on the level of skills of senior mangers. The first major step for the managers is to recognize the nature of the firms architecture and the function it plays in the markets the firm serves. Kay argues that there are two main types of distinctive capability based on architecture,. Firstly, the firms architecture may generate a flow of innovations which forms a sustainable advantage. Secondly, the architecture of the firm may allow the firm to successfully adopt new technology sooner and more efficiently than its competitors. The second primary distinctive capability is Reputation. This is the most important commercial mechanism for conveying information to consumers. The process of building up a reputation can br accelerated by staking a reputation which has been established in a related market. Once the firms reputation has been created, it will have an advantage competing for new customers and further strengthening its reputation. However, reputation is difficult and costly to establish and in order toShow MoreRelatedCompetitive Advantages Of Competitive Advantage924 Words   |  4 Pagesâ€Å"Competitive advantage literally is the ability to sustain profits that exceed the average for the industry through developing distinctive competencies: distinctive, because the competitors don’t have them and because they are fundamentally difficult to replicate† (Berry, 2012). Competitive advantage through people is critical for a business to succeed. Without people, businesses would lack the ability to have the innovations to differentiate their products or services from their contenders inRead MoreCompetitive Advantage And Competitive Advantages1627 Words   |  7 Pageshaving sustainable competitive advantage has become imperative so as to survive. The metamorphosis of technology has made the job further challenging to have a competitive advantage and sustain it. Competitive advantage is defined as an idiosyncratic lead a firm has over its fellow challengers and emulators. This lead enables the firm to vanquish its challenger. In other words it is something that distinguishes an organization from the competitors. For a competitive advantage to be sustainable, theRead MoreCompetitive Advantages Of Competitive Advantage Essay1584 Words   |  7 PagesQuestion 1: Competitive advantages are conditions that permit an organization or nation to deliver a decent or administration at a lower cost or in a more alluring manner for clients. These conditions permit the gainful element to produce a bigger number of offers or unrivaled edges than its opposition. 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As understood by us in the above example the competitive advantage that the cyrptoses enjoy is a direct outcome of its natural habitat and hence the circumstantial gain over its rivalsRead MoreCompetitive Advantage And Competitive Strategy1714 Words   |  7 Pages COMPETITIVE ADVANTAGE If a value creating strategy is implemented by an Organization and it is not being implemented at the same time by another organization, one can say the organization has a competitive advantage over its competitors. It is imperative for a firm to choose the height of competitive advantage it wants to attain in the industry. An organization must aim to initiate a profitable and sustainable spot against your competitors in the same