Question

What are the common sources of a company's competitive advantage? Do you think that it would be better for a company to concentrate on one source or on more than one? Explain why. Answer using a company as an example.

Answer 1

There are different common sources of competitive advantage to the companies. The first common source is innovation driven technology that is unmatched in the business environment. The second common source is cost advantage backed by the quality that creates differentiation in the market. The third common source is talented human resource that acts as a driving force behind the R&D work of the organization.
The company should start with one source of competitive advantage, then the company should follow the next source of competitive advantage. For example, Walmart applies low cost with quality to attract the consumers towards the white label products. Though a company Apple uses different sources of competitive advantage. The first source is technology driven innovative designs, product quality with superior user experience as well as a talented human resource. The products like iPhone & iPad gives competitive advantage over the rival products and it is the human resource team that continuously work to deliver new & revolutionary product and or upgrade to ,mesmerize the consumer segment. Hence different sources are effectively used by Apple to create competitive advantage. Similar competitive advantages are created by Microsoft that produces a product like Windows OS that is unparalleled to other OS in the market, and the product comes at lower prices also. Hence, cost advantage is also created without compromising with the quality. So, a company can effective use different sources of competitive advantage in the marketplace.