Quick Answer: What Is The Meaning Of Competitive Advantage?

What is McDonald’s competitive advantage?

McDonald’s is an industry leader in the fast food industry.

Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services.

The success of the organization has been its ability to leverage its key strengths so that it can overcome weaknesses..

What is the meaning of competitive advantage in business?

Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.

What is competitive advantage with example?

Three great examples include: McDonald’s: McDonald’s main competitive advantage relies on a cost leadership strategy. The company is able to utilize economies of scale and produce products at a low cost and, as a result, offer products at a lower selling price than that of its competitors.

How do you explain competitive advantage?

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.

What are the six factors of competitive advantage?

The six factors of competitive advantage are quality, price, location, selection, service and speed/turnaround.

What is Coca Cola’s competitive advantage?

Coca Cola has competitive advantage so it is making it get bigger and bigger in terms of sales and market share. Coca Cola reputation has also competitive advantage and it is also pursuing environmental friendly product. Coca Cola many products are recyclable and Coca Cola is also going for the green effect.

What are the 5 areas of competitive advantage?

5 areas to drive competitive advantageMARKETING. How can your marketing team make claims about your product and the ability to deliver it without knowing the capabilities of your supply chain? … FINANCE. Here are two departments which ought to be so close their husbands and wives start to get jealous. … HUMAN RESOURCES. … LEGAL. … CUSTOMER SERVICE.

What is the competitive advantage of Apple?

Apple’s competitive advantage are its control of software, Hardware, retail strategy, product differentiation and most important one is Steve Job’s strategically decision making. For the distribution system, Apple launched a website for direct sales for the first time.

What are the four sources of competitive advantage?

What are the sources of competitive advantage?Strong research and development capabilities. … Access to intellectual properties. … Exclusive re-selling or distribution rights. … Ownership of capital equipment. … Superior product or customer support. … Low cost or high volume production. … Economic factors. … Superior database management and data processing capabilities.More items…•

How do you achieve cost advantage?

There are two major ways to achieve a cost advantage:Control cost drivers. A firm can gain and advantage with respect to the cost drivers of value activities representing a significant proportion of total costs.Reconfigure the value chain.

What is the goal of competitive intelligence?

The goal of competitive intelligence is for a business or individual to be able to make smart and strategic decisions with that information. These decisions can be made when the risks and opportunities are better understood.

What are the two types of competitive advantage?

There are two basic types of competitive advantage a firm can possess: low cost or differentiation. … The focus strategy has two variants, cost focus and differentiation focus.

What are sources of competitive intelligence?

A typical competitive intelligence study includes information and analysis from various disparate sources, including the news media, customer and competitor interviews, industry experts, trade shows and conferences, government records, and public filings.

What are the three basic types of competitive advantage?

There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies.

How do you gain competitive advantage?

9 Strategies to Gain a Competitive EdgeCharge More. While many businesses think of slashing their prices to stand out, there’s value in going the other direction. … Become an Online Influencer. … Speak at Events in Your Industry. … Create Your Own Data. … Niche Down. … Leverage New Technology. … Delight Your Customers. … Invest in Deeper Customer Relationships.More items…

What is another word for competitive advantage?

What is another word for competitive advantage?one-upmanshipgamesmanshipartfulnesscompetitioncunningcutthroatbetteringcageynesscanninesscompetitive edge3 more rows