Competitive Advantage

• What is the concept of competitive advantage?

  A sustainable advantage over competitors
• Why is competitive advantage important for businesses?

  It helps businesses succeed and earn higher profits
• How does Amazon demonstrate competitive advantage in e-commerce?

  By dominating many e-commerce segments globally
• What market share does IKEA hold in many countries?

  Over 30% in the home furnishings market
• What percentage of athletic shoes sold in the US are Nike shoes?

  One fifth or 20%
• What percentage of online web searches in the UK use Google?

  90%
• What are the two main types of competitive advantage?

  Cost advantage and differentiation advantage
• What does a cost advantage allow a business to do?

  Produce products at a lower unit cost
• What is meant by economies of scale?

  Cost advantages due to increased production
• What is differentiation advantage based on?

  Perceived value in quality or service
• How can a business win in the long term?

  By having either cost or differentiation advantage
• What is the essence of competitive advantage?

  • Sustainable advantage over competitors
  • Can be based on cost or differentiation
  • Leads to higher market share and profits
• How can Porter's generic strategies relate to competitive advantage?

  • They provide frameworks for achieving competitive advantage
  • Focus on cost leadership or differentiation
  • Useful in strategic planning and analysis