You discover a briefcase full of money on the street. What would you do?
- Keep the money for yourself
- Turn the briefcase in to the authorities
What is a competitive advantage?
Competitive advantage is a term used to describe a business's ability to outperform its competitors. It comes from having a unique advantage that other businesses do not have, such as better resources or access to markets. Having a competitive advantage can help businesses grow and succeed in a competitive market.
Competitive Advantage: A situation in which a company has an edge over its competitors in terms of offering a better product or service. Cost Advantage: A competitive advantage that a company gains by having lower production or operating costs than its competitors. Differentiation Advantage: A form of competitive advantage that a company gains by offering unique products or services that are different from its competitors' offerings.
What do you think is the most important factor in creating a competitive advantage?
- Innovative ideas
- High quality products
- Excellent customer service
- Low cost production
Studies have shown that companies with a competitive advantage can increase their market value by up to 400% in the long-term. Companies that have a competitive advantage are more likely to be able to quickly capitalize on opportunities in the competitive landscape.
Did you know?
Competitive advantage isn't just about having a higher quality of product or service. It can also include faster delivery times, better customer service, and lower prices.
Important for your assignment
What competitive advantages do companies need to succeed in a global market?
Draw a mix-and-match creature with the head of a duck, the body of a chimpanzee, and the tail of a peacock. Let your imagination run wild!
What strategies can businesses use to gain a competitive advantage over their competitors?
11. Personalised Feedback
In what ways can a company gain a competitive advantage over its rivals in today's global market?
What types of competitive advantage have you seen businesses use to gain an edge over their competition?
Checkin: Draw/write - Is making money the most important thing in life? Why/why not?