01 REVIEW 2

STRATEGIVE MANAGEMENT
GROUP 6

Cruz, Van Kenneth

Daganta, Al Fharid
Elospa, Riomar

I. Explain the concept of competitive advantage.

- Competitive advantage the factor or characteristics that permit one
company to compete more effectively than its industry peers. These
factors allow the productive to makes an entity's products or services
more desirable to customers than that of any other rival and generate
more sales or superior margins to others. The two main types of
competitive advantages are comparative advantage that refers to
when a firm can produce products more efficiently and at a lower cost
than its competitors. And differential advantage a firm's products or
services differ from its competitors' offerings and are seen as
superior. Competitive advantages are attributed to a variety of
factors including cost structure, branding, the quality of product
offerings, the distribution network, intellectual property, and
customer service. The more sustainable the competitive advantage,
the more difficult it is for competitors to neutralize the advantage.

A sustainable competitive advantage is particularly valuable, as it

endures over time and is not easily replicated by competitors.
Understanding and leveraging core competencies, building brand
reputation, and adapting to changing market conditions are essential
components of maintaining a competitive edge. In essence,
competitive advantage is about creating and maintaining a unique
position in the market that allows a company to outperform its rivals,
delivering superior value to customers and stakeholders. It is a
dynamic concept that requires continuous strategic assessment and
adaptation to stay ahead in a competitive business environment.