“If a man
would write a good book, preach a better sermon, make a better bread, make a
better mouse trap, than his neighbor, though his house is in the wood, the
world will make beaten paths to his door”- Abraham Lincoln.
Competitive advantage is an advantage over competitors gained by offering consumers greater
value, either through lower prices or by providing more benefits that justify
higher prices.
• A firm has competitive advantage
when it is able to create more economic value than rival firms.
• Valuable resources which are
difficult to copy can give a sustainable competitive advantage to a company.
For a
resource to be able to contribute to a firm´s sustainable competitive
advantage:
• Value
• Rare
• Inimitable
• Organizable
Valuable
resources which are difficult to copy can give a sustainable competitive
advantage to a company. Such resources are such as:
Resources based
–
Access
to unique raw materials or location
–
Access
to license from regulatory authorities
–
Privileged
access to information
Assets-based
–
Unique
low-cost position owing to accumulated volume
–
Unique
low-cost/quality position owing to proprietary process technology
–
Unique
low-cost position owing to installed based
–
Control
of distribution network
–
Well
established brand/reputation
–
patents
Competences-based
–
Proprietary
scientific/technological know-how
–
Superior
ability to bundle know-how
–
Superior
ability in management of critical processes
–
Superiority
in time management
–
Faster
product development
Customer loyalty
–
Product
unique or more valuable
–
Brand
–
High
switching costs
Positive feedbacks
–
Network
externalities
Experience effects
