The main determinant of a firm’s success or failure is competition. Competition defines the suitability of a company’s operations that can impart to its operation, such as innovations, an interconnected culture, or good execution. Competitive advantages are recognized to an assortment of elements, including cost structure, trademark, quality of product provided, intellectual property, well-connected distribution system, and customer support (Porter, 2008). Before describing one’s competitive edge, a firm should understand the following three determinants. One is benefit. The firm must be clear to the benefit the product will offer whether it is a good or service. Two, the target market. The firm must identify who the buyers are and how they can make the clients’ lives better. Demand is the driver of all economic growth, and this is how the business will create it. Three, the competition in the market.
Porter defined the three types of competitive advantages that firms can utilize to attain a sustainable benefit (Porter, 2008). They include differentiation, cost leadership, and focus. First cost leadership means that a firm provides realistic value at an affordable price (Clegg, 2011). Companies accomplish this by constantly improving performance effectiveness. That normally means less salary to their workers though some compensate it by giving intangible benefits like…
Get a verified expert to help you with any urgent paper!Order Similar
from $10 per-page