Building Blocks

The Building blocks of competitive advantage are Efficiency, Quality, Innovation and Customer responsiveness (1990, Fall).. Competition can increase the pace of scientific advancement, Competitive advantage is a term given to any factors that helps a business succeed over its rivals. If a business has a better location than another rival business, that would be a competitive advantage. Another example of competitive advantage might be the company's products versus a rival's products or a company's total market share. Organizational learning is a long term activity that will build competitive advantage over time and requires more sustained management attention, commitment, and effort. The competitive advantages translate into the ability to win market share and earn a higher profit than other competitors(1990, Fall).. When you have A successful business model, the results from business level strategies that create a competitive advantage over rivals and achieve superior performance in an industry, that is, they must optimize competitive positioning.

When it comes to the competitive advantage building blocks, it’s more efficient, quality, innovation, and customer responsiveness anticipating customer needs. These building blocks are generic in what provide four basic ways to lower cost and achieve differentiation. Any firm can adopt these no matter what industry it is in or what product or service it provides. The cost of inputs required to produce a given output is the base on efficiency. The more an efficient a firm is the lower the cost of its inputs required to produce a given output. It helps a firm attain a low cost competitive advantage. Employee productivity can be the key to efficiency.

Competitive advantage is the creation of a brand name reputation that provides high produce quality, greater efficiency and lowers costs. This enhanced reputation allows the firm to charge a higher price compare to a lower price. The costs are down so profits are much higher at the same time as higher competitive advantage. Quality has become imperative for survival in some firms. What Innovation gives to a firm is something unique. When a firm is the pioneer it’s in the industry that can charge a higher price because of a lack of competition. When there is competition down the line the newcomers must deal with the pioneer's reputation.

https://wiki.westminstercollege.edu/LR/Competitive_Advantage

Jones, G., & George, J. (2011). Essentials of contemporary management (4th ed.). Boston: McGraw-Hill Irwin.

Senge, P. (1990, Fall). The leader's new work: Building learning organizations. Sloan Management Review, 7-23.