Five dimensions of competitive advantage

By, R.SURJITH I-MBA

 Changes

in business phenomenon and competitive situations nowadays influence corporations to create unique competitiveness or competitive advantage by improving superior performance and strengthening long-term competitive position.

 Product

advantage Cost advantage Knowledge advantage Relationship advantage Structural advantage

 An

enterprise will gain product advantage if it is able to create a superior product value higher than competitors

An enterprise will gain cost advantage if its cumulative operating costs are lower than competitors.

An enterprise will enjoy knowledge advantage if it has more knowledge than competitors . There are 3 types of knowledge that support the enterprise to take advantage over competitors: product knowledge, market knowledge, and technical knowledge

 Relationship

is fundamental to establishing trust, which adds value in supporting an enterprise to secure its revenue and operations and to minimize transaction costs

A structural advantage involves organizational systems, relationship, and communication in an organization. An enterprise will gain structural advantage if it is adaptable, flexible, speedy, responsive, innovative, and task oriented