Management Essay

2663 Words11 Pages
Nowadays, competitive advantage is the essential element for-profit organisations in the world. Nevertheless, nobody knew that the competitive advantage is also important for not-for-profit organisations. In this essay will consider how the competitive advantage is as important for not-for-profit organisations as it is for for-profit organisations. It will also provide some examples of how competitive advantage is important for not-for-profit organisations. References will be made to academic literature to support this discussion. “Competitive advantage is what sets an organisation apart, its distinct edge” (Robbin, 2006). Distinct edge is an organisation’s core competencies that means that the organisation does something that other cannot do or better than others can do it. Nowadays, some companies will copy the goods or services from other organisations to build up their new products. If companies want to prevent the goods or services are copied by competitors, they should build up their competitive advantage to protect the company. Balderston in California management review (1985, p.179-184) stated that competitive advantage is dedicated to the task of pointing the way to specific means of achieving and sustaining an advantage position. Porter (1991) mentioned that the most dangerous competitors are those that are most like you, so, the difference between company and the competitors are the basis of competitive advantage. Therefore, each company should have their particular competitive advantage to over its competitors. “Companies achieve competitive advantage through acts of innovation” Porter (1991). Porter (1991) suggested that the capture of advantage through intensive efforts at improvement or reorganisation of these value activities. The goal of most business is to create a strategy that gives the company a sustainable competitive advantage over its

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