Competitive Advantage

One of my Business Students had a go at explaining competitive advantage using this Tutor2U article

This is a really good article explaining some ways in which firms can gain a sustainable competitive advantage. However, what I think is important to point out to students is that Competitive Advantage does not need to be overly complicated. Different firms find different ways to create a competitive advantage. It is sometimes easier to consider it with the use of the 4P's.

You could adopt different Pricing strategies to open up an advantage to your competitors. Price leadership would require economies of scale but that is not the only pricing strategy you could use to have an advantage over your competitors. You also don't have to be the cheapest in an entire country, could you not simply be the cheapest most convenient supplier to your customer base?

Firms don't have to be the biggest, if they can find a USP as this business has managed to find. Are Apple Macbooks and tablets popular because they are the best? I cant stand Macbooks but the article here suggest they are quite reliable. Shame they struggle to connect to our school internet depending on which way the wind blows...

Years ago another firm brought out an innovative product in 2001... A tablet PC with the CEO claiming "This will be the most popular computer bought in america within 5 years..." That CEO was Bill Gates and business was the mighty Microsoft. Why did that product fail when 10 years later Apple bring out pretty much the same thing but it succeeds? Apple has a massive competitive advantage as it stands but why is this? Is it their product? Is it the brand? As with everything Apple seems to defy the odds and come out on top! Microsoft have a history of doing this to their competitors which is why they are so big which makes it all the stranger.

Some other ideas about competitive can be found in the below article... 37 in fact!

http://www.smarta.com/advice/business-planning/market-research/37-ways-to-beat-your-competitors

What about R&D being a means to creating competitive advantage?

http://paidcontent.org/2011/08/30/419-samsung-investing-a-small-fortune-in-rd-will-webos-be-included-in-that/