Sustainable Competitive Advantage ”A company can outperform its rivals only if it establishes a difference that it can reserve”. - Michael Porter The unique skills and assets a company has to outperform its rivals are the sources of competitive advantage. The competitive advantage results from implementing a value creating strategy that is not implemented simultaneously by its competitors. The strategy attains sustainability if the competitors are unable to erode the strategic advantage the
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Sustainable Competitive Advantage Competitive advantage is gained when a firm acquires attributes that allow it to perform at a higher level than others in the same industry. 1. fig. 1 Starbucks Coffee Starbucks Coffee shops are almost always strategically placed to ensure a competitive advantage. WANT HELP STUDYING SUSTAINABLE COMPETITIVE ADVANTAGE? Get the Flashcards Take a Marketing Quiz * Firms can obtain a competitive advantage by implementing value-creating strategies‚ not simultaneously
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A good competitive strategy does not only focus on the making strategy of company itself‚ but also have to emphasis on creating a competitive advantage over competitors. A company should first perform a detailed situation analysis (e.g. SWOT Analysis) and competitor analysis. In addition‚ a company would also need to analyze the macro-environment of the related industry using the model such as Michael Porter’s Five Forces Model. After all‚ the good competitive strategy developed should be best “fit”
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Establishing a Competitive Advantage Competitive advantage is a benefit for any company to strive to achieve. A competitive advantage is an advantage over competitors gained by offering consumers greater value‚ either by means of lower prices or by providing greater benefits and service that justifies higher prices (tutor2u‚ 2009). A company that has attained competitive advantage over others creates a unique selling point or USP and allows that company to gain a larger market share by being
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Model of Service Quality 2 2-2 Variations of the Gaps Model Five Service Quality Gaps Variations of the Gaps Model Six Service Quality Gaps Variations of the Gaps Model 13 Service Quality Gaps (Gaps Model gone wild) Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality The Customer Gap (Sometimes referred to as Gap 5) 2 The Provider Gaps: Gap 1 – The Listening Gap not knowing what customers expect Gap 2 – The Service Design and
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There are six possible waiting point in the “Made by You” Services Blueprint. First one can be already in the reservation making when the customer cannot get somebody on the phone or it takes hours or even longer to receive a confirmation email. Second waiting point can appear when the customer enters the store and all staff members are busy or the one who speaks English is not available at the moment. The same waiting reason can occur when the customer wants to pay. The fourth cause of waiting is
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by the particular characteristics of service—intangibility‚ inseparability‚ variability‚ and perish ability. These characteristics also pose more marketing complexities which require different management activities. All services are experiences—some are long in duration and some are short; some are complex and others are simple; some are mundane‚ whereas others are exciting and unique. (Wilson‚ Zeithaml‚ and Bitner‚ 2008) The delivery process of the service has been entitled the Servuction System
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world stopped. Although at that moment we were under the impression he was still alive‚ I had a knot in my stomach that felt like I knew that wasn’t true. The drive from color guard practice to the hospital was a blur. All I remember was telling the service desk my last name before being escorted to a personal waiting room followed by the doctor who informed me that my dad had died. When I was 16 I thought I was on top of the world and never imagined that I could lose a parent at such a young age.
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Monopolistic Competitive Market Introduction The term market refers to the place where buyers and sellers meet to engage in transactions that entail the exchange of goods or the provision of services for a consideration. A market is not only characterized by a building where people carry out business transactions. This is because any place that people carry out commerce can be referred to as a market. A market is characterized by various mechanisms that facilitate trade. These mechanisms usually
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Tesco’s key functional areas Functional areas In all companies there are many different tasks which need to be carried out regularly‚ in order for the business to reach its aims and objectives. Stock needs to be brought‚ the bills and finances need to be controlled‚ and customer service issues dealt with and so on. In a small organisation one or two people may do all the jobs‚ whereas in a large organisation people have to be specialized in many different individual tasks. In a large company
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