The competitive advantage of a company, its importance and types

There is a fact that is evident and notable, there are companies that work well and of a company companies that work poorly. This happens regardless of the sector or market and competitive advantage has a lot to do with it. We see every day that businesses from traditional and boring sectors that work very well and emerging and disruptive companies that work poorly. But when I say that they work well or that they work poorly, I do so based on that “something” that generates profitability. Profitability is what makes a business work and last. We can define competitive advantage as “something” that a business has that is difficult to imitate or match. They can be its costs, the brand, the technology, the prestige, etc. but it has to be sustainable over time.

What is a competitive advantage for a company?

The competitive advantage makes the client opt ​​for that company , take it into account and in turn generate a sufficient commercial margin for the business to continue existing. But the best way to see it is with an example. Imagine that you Romania Phone Number List want to buy a mobile phone. You have the option of purchasing an Apple iPhone phone or one with similar technical specifications from the Huawei brand. The Apple phone costs euros and the other € History has shown that millions of people prefer to buy the iPhone over the Huawei. Many or more others prefer Huawei over Apple. There is a competitive advantage when a customer is willing to pay more for that “something” for a product with similar characteristics.

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What is the objective of competitive advantage?

Every business must have a clear competitive advantage and every business must act and make decisions based on that competitive advantage to take advantage of it. For example in the case of cars. Volvo for many years (and continues to be so today) was Russia Phone Number List synonymous with safety. This relationship between Volvo and safety has always existed. In , Volvo invented the three-point seat belt that we know today and that has saved and will continue to save so many lives. Volvo constantly strives to evolve and improve the safety of its cars. All developments have security as their focus. This means that their cars pass safety tests and approvals with the highest marks.

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