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Competitive Advantage Summary

5 min read ⌚ 

Competitive Advantage SummaryCreating and Sustaining Superior Performance

Differentiation is a crucial segment that every company wishes to attain.

However, this concept doesn’t only include maintaining a different set of products; it also reflects marketing positioning, focus, and long-term strategy.

Who Should Read “Competetive Advantage”? And Why?

A cost-effective approach for interpreting company’s competitive options bridges, signifies what might otherwise be a crack between tactics and execution.

Competetive Advantage” comes highly recommended for all people working (or wanting to be a part of) in certain companies – especially managers.

About Michael E. Porter

Michael E. PorterMichael E. Porter is a professor at the Harvard Business School – Institute for Strategy and Competitiveness, and an internationally recognized author of several books and a theoretician. He was born in Ann, Arbor, Michigan, United States in 1947, May 23.  

“Competitive Advantage Summary”

Generally speaking, globalization has produced a variety of new industries. The market didn’t recognize the impact that these industries will have in years to come and as a consequence didn’t pay much attention to them. Incurred costs manifest company’s cost/benefit ratio, but that’s not always the case.

Generating value surely means a lot more to businessmen than simply relying on a profit-oriented organization. Nowadays, companies fear the fierce competition emerging from the previously mentioned term- globalization.

Large enterprises invest a large portion of their retained profits on new systems, which focus on Integrating all activities linked to the company – to fight over this rivalry.

The value chain confuses the management of these organizations even in modern times. Still, you cannot merely rely on one methodology and use it in every industry; this effort will be meaningless.

Concentration on the value chain will enable the managers to get a more detailed overlook of the processes conducted by the organization.

All of these strategies are only beneficial if the executives follow a vision and have clear long-term objectives. With this in mind, managers can now start to identify product or service improvements and implement a solution that will create a real business value.

Customers are aversive and excited about a change at the same time. The company needs to apply certain trade-offs, and help the consumers to overcome the distrust towards the new commodity.

Then, there are “premium products” that people wish to purchase. However, if there is not a precisely defined Target Group, the products will struggle to reach their end users. For example, if you design expensive lingerie and your target customers are older women than probably the marketing campaign your department creates will experience a total collapse.

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