Question

Which attributes determine sustainability of competitive advantages? Discuss the six different types of competitive advantages. [19 marks]

Answer 1

The attributes which determines the sustainability of competitive advantage are as follows:-

i) Customer perception

ii) Sustainable Competitive Advantage linkage

iii) Durability

iv) Replication

V) Coordination

Vi) Transparency

vii) Accessibility

Theses are the seven attributes which Boar defined as the attributes which should be possessed by firm to have sustainable competitive advantage.

B) The six strategies of competive advantage are as follows :-

i) Cost leadership:- It is strategy where a business produces the same quality of the products as of the competitors but sells it at a lower price.

ii) Differentiation:- It is a strategy in which the product or service offered by the business deliver different benefits than the products offered by the competitors. It involve defining the offerings unique position in the market by explaining the unique benefit it provides to the target group. This unique position can refer to the high quality, better delivery more or any other specific attributes of the product.

iii) Focus:- It is also called the segmentation strategy the strategy in targeting a predefined segment rather than everyone it involves understanding the target market better than anyone else and use that data for better of ring crafted according to the target markets needs.