BUSINESS STIMULATION

Amritjot Singh(A00129875), Damanpal Singh(A00128826), kawalpreet Kaur(A00130085), Divya(A00129082)

SUBJECT CODE- BUS209

INSTRUCTOR NAME- Megha Gaur
DUE DATE- 8 August,2022
Develop and implement strategies that will result in the
corporation attaining a competitive advantage in the
market
CONTENT
 What is competitive advantage
 Examples of competitive advantage
 Why is competitive strategy important
 Purpose of competitive advantage
 How competitive advantage work
 Competitive advantage in market
 constructing a competitive advantage
 Methods of competitive advantage
 Strategies to gain competitive advantage
 Reference
WHAT IS COMPETITIVE ADVANTAGE

Competitive advantage refers to a things

that a company allow to produce better
goods and services or less expensive from
the competitors, which results in produce
more sales or higher profit margins..To be
successful, a company’s competitive
advantage produce the value for its
investors or shareholders and be difficult
for others to reproduce.
Competitive advantages result of a combination of variables such as –
 The quality of the product
 Cost strategy
 Customer service
 Branding
 Positioning in the market
 Networks of distribution
 Access to innovative ideas and technology
  Access to new technology
 Conscious of brand image
 Access to natural resources that are restricted
from competitors.
 High skilled labour.
EXAMPLES OF  Ability to manufacture products at the low
COMPETITIVE prices.
 Unique geographical location
ADVANTAGE
WHY IS COMPETITIVE STRATEGY IMPORTANT

To retaining a competitive advantage over competition is important to business

success because-
 It helps to attract new customers easily.
 It helps in maintain brand loyalty.
 It provide high profit margin.
 It add predictability and constancy to the company’s revenue streams.
 It helps in attract more brand alliances, talented and potential investors.
 The purpose to keep a competitive advantage
is to differentiate a company from its
Purpose of competitors by offering something different
competitive
and at less cost to the customers. Competitive
advantage
advantage also means the business can
perform better in its competition in the market
and make a higher profit.
HOW COMPETITIVE ADVANTAGE WORK?

There are three factors that can help in deciding how a

company shape its competitive advantage-
 Analyze the market: Firstly, analyze the market to develop a
good competitive advantage. It helps in finding the target
market and how it effect the growth of the business.
 Implements strategies: After analyze the market then
identify the target audience and implement the strategies. It
help in positioning the products ahead of the competition.
 Monitor performance: It uses to adjust areas that are not as
effective and focus more resources on ones that are
successful.
 When a corporation has a competitive advantage in the
market, it can attract more customers and expand its
market share. Smaller business can’t compete and they
can’t offer the same value. Competitive advantage in
marketing plays a important role in a company’s
COMPETITIVE business operations because it gives a company the
innovative over its competitors, which is beneficial in
ADVANTAGE IN long term objectives. It attracts customers towards the
products and services over its competitors. A
MARKET competitive advantage in business is helpful because it
differentiate a company from its competitors. Thus, it
brings more customers, which convert to increase in
sales, brand loyalty, and high prices, which means a
higher return on investment.
CONSTRUCTING A COMPETITIVE ADVANTAGE

Before constructing a competitive

advantage, it is important to know these
points-
 Benefit: A company must be clear about
what benefits are provided by their
product a service. It must offer real value
and generate interest on it.
 Target market: A company must found
who is purchasing from the company
and how it can serve to its target market.
 Competitors: It is important for a
company to understand other
competitors in the competitive prospect .
METHODS OF COMPETITIVE ADVANTAGE

Different
Same products Hold position
through Strategic
product, with defensive alliances
lower price different strategies
quality
 Strategies to gain competitive advantage

Low cost leadership

Broad differentiation
PRODUCT LAUNCH
PLAN Focused low cost

Focused differentiation

Best cost provider

 Low cost leadership: The objective of this strategy is to become the lowest cost producer. This can be achieved
through large scale production.
 Broad differentiation: In broad differentiation strategy, a company differentiate their products and services from
its competitors. This can be done innovating and delivering high quality goods and services to the customers.
 Focused low cost: It concentrate on selling products at low cost producer in a narrow market segment. The main
objective is to serve niche buyers better than the competitors.
 Focused differentiation: In this, a company aims to differentiate its goods and services within a narrow market
segment.
 Best cost provider: it is a hybrid of low cost provider and differentiate strategies. Its aim is to provide best quality
and features of goods and services while beating competitors on price.
 REFERENCE

 https://www.investopedia.com/terms/c/competitive_advantage
 https://corporatefinanceinstitute.com/resources/knowledge/strategy/competitive-advantage
 https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work
THANK YOU