Competitive advantage

• What is adding value?


  Increasing the worth or quality of something, this may be achieved by improving the product or the way it is perceived
• what is added value?


  price - unit cost
• what does a USP stand for?


  Unique selling point
• what is an unique selling point?


  a factor that differentiates a product from its competitors
• what is product differentiation?


  The process of distinguishing a product or service from others in the market.
• what is competitive advantage?


  features of a business that enables it to generate more sales or be more profitable than rivals
• what is corporate strategy?


  the medium to long term plan that a business will follow to acheive its objectives
• what is differentiation strategy? 


  where a business sets out to provide unique benefits that customers value
• what is cost leadership strategy?


  minimizing costs to offer products/services at lower prices than competitors, usually done by improving operational efficiency
• what is Michael Porters Generic Strategies?


  to get above the average profit for the industry, there are only two main ways: low cost (by using premium price) and differentiation (minimise unit costs and use lean production). the business also needs to decide whether to target the whole market or just a specific segment of the target market.