Dogosh

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Competitive Advantage

Written by dogosh on 5/15/2008

Just was mischievous here possibly had the colleague at the same time that wanted to addition the matter of competitive advantage. As something absolute was owned in order to be able to remain in the business. Competitive advantage was the superiority that owned by us and was not owned by the competitor. This matter was the trigger why the consumer chosen us. Competitive advantage for example to have the cheap product (but not cheap) or had the quality product high or had very superior technology. Walmart sold cheaply, because will be chosen by many people.
That’s interesting from this book, was told that had competitive advantage not yet was enough. The Competitive advantage must be communicated to the community. The example: when the plague of dengue fever happening, the company that produced mosquito repellent installed "our Mosquito Repellent" advertisement "could kill caused mosquitoes the bloody fever." Will be more superior than the company of this kind, although the competitor's mosquito repellent could also kill these mosquitoes. So as competitive advantage could emerge, when we were the first claimed had mosquito repellent that killed the cause of dengue fever.
Competitive advantage was the long concept was not cracked in ate the time, and still continued to become a concept that remains up to now. In fact we still could not speak about Competitive advantage without speaking about the competition.... because the competition that finally had created the concept competitive advantage.
Spoke about Competitive Advantage I was still remembering words of Michael E Porter, there were 7 matters that affected CA that is:
  • Cost Advantages
  • Differentiation
  • Bussines Linkages
  • Services
  • Infrastructures
  • Technology
  • human Resources
well , remained adapted your company could enter with any category.
Competitive advantage despite this absolute advantage. the old theory from Adam Smith. So if competitive advantage = the superiority that was not had by the competitor, whereas absolute advantage = the superiority that was owned because of the strength of capital/technology so because of the strength that could not be competed with.
The real exampleof absolute advantage = big companies that had technology no 1 and have big capital. This still could be opposed by competitive advantage like human resources / culture of company. So keep on fighting.

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