According to what I have learned in the class about this topic, I realize that in businesses, we should have competitors in order to excel in our business development including employees, productions, financial of company and so forth. If company is popular and well-known, it can be remain for a long time period rather than company which is small, less compete, less budget and more. In last class, we are having an activity in which we need to form a group and discuss about the competition among company in the same field of business. For example, KFC Holdings which is a kind of fast food restaurant and compete with McDonalds in terms of services, variety of menus and drinks, promotions and so forth. All these factors are the core business in order to attract clients to come to their restaurants and gain as much profit and achieve their organizational mission. One of the advantages of the competition among them is the restaurant have their own clients and brand name or product, may remain for a long period when the profit is increase and stable and they compete in a good way in which they globalize and centralize their market or product to control and promote using network from client support.
Based on this situation, we can conclude that competitive advantage is that firms has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support. Another term of competitive advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Christensen and Fahey 1984, Kay 1994, Porter 1980 cited by Chacarbaghi and Lynch 1999, p. 45).
Information technology has become a generator to these competitors in order to promote their sales and products by using an internet. By using the internet as the middle-site to customers and organization, businesses can gain a competitive advantage through creation of an effective website.
Reference :
Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter
No comments:
Post a Comment