Describe how you develop your new product to sustain competitive advantage

Competitive Strategy

Ø  COMPETITIVE STRATEGY consists of moves to

·         Attract customers

·         Withstand competitive pressures

·         Strengthen firm’s market position

Ø  OBJECTIVES

·         Earn a COMPETITIVE ADVANTAGE

·         Cultivate clientele of LOYAL CUSTOMERS

·         Knock the socks off rivals, ethically & honorably

Ø  COMPETITIVE STRATEGY, narrower in scope than business strategy, focuses on management’s plan to compete successfully

Competitive Advantage - Definition

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Following on work analyzing the competitive forces in an industry, Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage. The four strategies relate to the extent to which the scope of businesses' activities are narrow versus broad and the extent to which a business seeks to differentiate its products.