What Are Competitive Advantages, How To Attain Competitive Advantages, The Best Competitive Advantages For Companies To Attain, And The Benefits Of Companies Attaining Competitive Advantages (eBook)

This essay sheds light on what are competitive advantages, explicates how to attain competitive advantages, demystifies the best competitive advantages for companies to attain, and reveals the benefits of companies attaining competitive advantages. Competitive advantages are not limited to comparative advantages that allow companies to be able to produce products and provide services at a lower opportunity cost than their competitors. Competitive advantages can also be differential advantages. Differential advantages are competitive advantages that allow a company to distinguish its product offerings and service offerings from those of their competitors. Differential advantages that allow companies to distinguish themselves from their competitors are not solely limited to companies having unique product offerings and unique service offerings. A company for instance can avail themselves of additional differential advantages if they have for instance attain an indelible brand identity and obtain a highly competent workforce. Companies leverage their potent competitive advantages to be able to more seamlessly grow their customer bases. Companies should strive to secure the lucrative lifetime values of their customers since doing so is conducive to attaining profit maximization. Attaining profit maximization can culminate in companies being able to amplify their revenue which can provide them with more capital to be able to further invest in expansion opportunities and research and development opportunities. There are a vast variety of disparate reasons as to why companies leverage their potent competitive advantages. Companies leverage their potent competitive advantages in order to render themselves all more apt to amplify their sales volume, sales revenue, and profits. Companies leverage their potent competitive advantages in order to also render themselves all more apt to increase their market share growth rate in the niche markets that they vie for market share in. Companies leverage their potent competitive advantages in order to render themselves all the more apt to attain sizeable brand recognition, strong brand loyalty, robust brand equity, and a stellar brand image. Companies leverage their potent competitive advantages with the aim to outperform their competitors in certain facets. Companies leverage their potent competitive advantages in order to significantly bolster their competitive prowess. Having ample potent competitive advantages renders companies more resilient to adverse changes to market conditions which allows them to more efficaciously endure adverse changes to market conditions than they otherwise would be able to do so if they lacked potent competitive advantages. Companies need to be able to operate profitably in order to be able to thrive, prosper, and flourish in the long haul. Operating at a net operating loss for a prolonged period of time can culminate in a company becoming all the more poised to become defunct. The attainment of ample potent competitive advantages among existing competitors in a market renders it all the more cumbersome for new competitors who lack potent competitive advantages to be able to efficaciously compete in a market even in contexts in which this occurrence transpires in a niche market. As existing competitors in a market attain more and more potent competitive advantages, then this occurrence consequently further amplifies the opportunity cost associated with entering a market that new competitors incur when they attempt to attain a foothold in a market that is replete with existing competitors who have already attained ample potent competitive advantages.