Competitive advantage and differentiation

Question 1

What is product differentiation?

Answer 1

-making a product stand out from its competitors’ products
-achieved through- branding, unique design/ features, customer experience, pricing

Question 2

what is the unique selling point
(USP)

Answer 2

• a feature that makes a business different from all others

Question 3

differentiation vs head-to-head competition

Answer 3

the process of differentiation means a business dosen’t have to position itself alongside rival firms

Question 4

when does competitive advantage exist

Answer 4

when a business creates value for its customers that is greater than the costs of supplying those benefits anf that is greater than that offered by competitors.

Question 5

what are the 3 ways to achieve sustainable competitive advantage?

Answer 5

1. innovation- creating new, unique products/ processes. sometimes can be legally protected through a patent
2. architecture- strong relationships within a business ( staff, suppliers)
3. reputation- brand value taht is hard to copy