Superior performance leads to competitive advantage, which is when a company offers greater value to consumers than its competitors through lower prices for the same product, greater benefits at the same or lower price, or additional benefits at a higher price. Competitive advantage can come from attributes like resources, skilled employees, location, or high barriers to entry. Companies with competitive advantage are usually more profitable than their competitors, and greater profits lead to an even stronger competitive advantage, creating a cycle of success versus failure.
Superior performance leads to competitive advantage, which is when a company offers greater value to consumers than its competitors through lower prices for the same product, greater benefits at the same or lower price, or additional benefits at a higher price. Competitive advantage can come from attributes like resources, skilled employees, location, or high barriers to entry. Companies with competitive advantage are usually more profitable than their competitors, and greater profits lead to an even stronger competitive advantage, creating a cycle of success versus failure.
Superior performance leads to competitive advantage, which is when a company offers greater value to consumers than its competitors through lower prices for the same product, greater benefits at the same or lower price, or additional benefits at a higher price. Competitive advantage can come from attributes like resources, skilled employees, location, or high barriers to entry. Companies with competitive advantage are usually more profitable than their competitors, and greater profits lead to an even stronger competitive advantage, creating a cycle of success versus failure.
The result of attaining superior performance will be competitive
advantage. Competitive advantage is an advantage a company has
over its competitors that it gains by offering consumers greater value than they can get from its competitors. The greater value may be in lower prices for the same product or service; or it may be in offering greater benefits and service than its competitors do, thereby justifying higher prices; or it may be offering greater benefits at the same or even at a lower price than its competitors charge. Competitive advantage may be derived from attributes that enable an organization to outperform its com- petitors such as access to natural resources, highly-skilled personnel, a favorable geographic location, high entry barriers, and so forth.
A company that has competitive advantage will usually be more
profitable than the companies it competes with. The higher its profits are in comparison to its competitors, the greater its competitive advantage will be. Competitive advantage leads to increased profitability; and greater profitability leads to increased com- petitive advantage. Competitive advantage makes the difference between a company that succeeds and a company that fails.