Competitive Advantage Essay

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In today’s world virtually all businesses are born into competition. There are situations in which multiple organizations offer similar products, a limited number of firms seek the same consumers, and other organizations offer the exact same product just at a different price or in a different variation. So how do firms attempt to outperform their competitors and sustain profits? They create a competitive advantage. A competitive advantage is a business concept that allows firms to outperform their competition by generating greater sales margins/profits or retaining a larger number of consumers. In knowing that different customers are attracted to different attributes companies use a variety of competitive dimensions in order to set themselves apart, these include: cost or price, quality, delivery speed and reliability, and flexibly and new product introduction. Each of these dimensions can be strategically used by an organization to outperform its competitors and ultimately result in giving that firm a distinct competitive advantage.
Many companies use price in an
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