This dissertation analyses the sources of competitive advantage and the dimensions of competition in business enterprises. The success of a business venture immensely depends on the level of competitive advantage. Competitive advantage is when a firm’s performance is better than that of other firms. If a firm possesses a competitive advantage, it holds the ability to charge high prices while remaining the market leader. On the other hand, the firm may sell at lower prices to gain more customers. Categorizing the sources of competitive advantage is in several groupings. People, organizational culture and structure, processes and practices, products and intellectual property, capital and natural resources, and technology are the existent sources.
sources of competitive advantage and dimensions of competition
THE DIMENSIONS OF COMPETITION IN BUSINESS ENTERPRISES.
The dimensions of competition in business enterprises are aspects that define competition. Anything that compels a customer preference on one product against another product is a dimension of competition. The first dimension is the attraction of buyers that greatly influences competition levels. The firm’s ability to gain new customers while maintaining the usual customers is crucial. Besides, information flow is another dimension of competition. The types of information communicated to customers include information about product quality and pricing. Determination of competitiveness depends on how customers embrace the information. The last dimension is the location of an enterprise. Location determines many aspects of the product, such as price and marketing strategy. Incorporating these dimensions when learning the most appropriate source of competitive advantage is crucial.
dimensions of competition in business enterprises
THE IMPORTANCE OF COMPETITIVE ADVANTAGE IN BUSINESS PERFORMANCE
Establishing a competitive advantage requires coordination and planning within the departments of the organizations. Implementing the sources of competitive advantage in the organization results in the productivity of the firm. The first importance of competitive advantage is the improvement of marketing position. Consumer interest in the product increases due to the perception of company leadership in the market. Secondly, gaining a competitive advantage attracts investors. The investors have faith in the business due to assurance in return on investment. Furthermore, firms possess the ability to dictate their prices from gaining a competitive advantage. Consideration of the dimensions of competition is crucial in gaining a competitive advantage.
importance of competitive advantage in business performance
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