COMPETITIVE ADVANTAGE Flashcards
What is competative advantage
Competitive advantage: The unique characteristic of an organisation that differentiate them from their competitors and help to generate revenue.
What are the benefits of competative advantage
Increases sales
Increases sale price
Enables cost saving
What should having a competative advantage mean for a business
Having a competitive advantage should mean that a business becomes more profitable.
What are sources of competative advantage
Brand image
Workforce - Allow low cost production
Economies of scale
Product design
Geographical location
Customer service
Investment in technology
Innovation
IP - trademarks, patents and copyright
What are the difficulties maintaining a competative advatage
Brand image - need for continuous expenditure on marketing, potential impact of scandal
The workforce p need to balance low staff turnover with effective recruitment
Economies of scale - can be duplicated by competitors
Product design - need for investment in market research and R&D
