Competitive Advantage Essay

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Competitive Advantage Porsha Jones BUS201 Tia Robinson May 12, 2014 There are four building blocks when it comes to competitive advantage. Those four building blocks are efficiency, quality, innovation, and customer responsiveness. Your business's competitive advantage is what makes your business stand out from your competitors. It is the reason why customers will purchase your products and services over those offered by your competitors. When describing your competitive advantage, look for questions such as the ones below: How will your products and services meet the needs of your target customers? What is special or different about your products and services? Who are your target customers? What are the needs and wants of your target customers? What value added features will you use to gain leverage over your competitors? Increasing efficiency and innovation, increasing quality and achieving superior customer responsiveness are ways for managers to improve business functions. These are the four function level strategies. There is durability of competitive advantage also. The durability of competitive advantage depends on the ease or difficulty to imitate distinctive competencies. The factors that make this task difficult is called barriers of limitation. A company needs to always present or act as if rivals are continually trying to nullify its source of advantage. So, these four building blocks will help companies lower cost and achieve differentiation. Efficiency is based on the cost of inputs required to produce a given output. Quality is necessary for long term goals for some companies. Innovation gives the company something unique and different about them as opposed to other companies and

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