What is competitive advantage and how does it relate to a company’s business mode?

Competitive advantage is an economic category, which means that an economic entity has unique characteristics that distinguish this economic entity from other similar entities in the market.

Explanation:

Competitive advantage is an economic category, which means that an economic entity has unique characteristics that distinguish this economic entity from other similar entities in the market.  Competitive advantages and disadvantages are identified in the process of comparing the elements of activity of market participants with elements of the activities of rivals. So, for example, you can determine whether a business idea is better or worse, the name of the created or acquired company, the composition of the personnel, management and top management of the company, business models, tools and objects of work used in business, business communication.

Each enterprise enters the market with the aim of achieving its goals and objectives, maintaining or protecting its market share. However, because there are so many competitors in the free and competitive markets that can meet the same consumer demand, they may prevent the enterprise from achieving this goal. To be able to cope with or prevent them from attacking, an enterprise must develop its own competition policy and competitive strategy, ie the concept of using its resources to prevent and resist competitors' actions against it and its goals. The prerequisite for success in free and competitive markets is that there are many consumers (or buyers) who perceive products or products offered by the enterprise as superior products over similar products of their competitors due to their parameters (quality, technical, operational, economic, etc.). To achieve this, every enterprise should strive to outstrip or outpace its competitors in competition. Understanding the need for competition and its discussion leads to a critical approach to the consumer-oriented marketing concept that the purpose of marketing is to meet the needs of consumers. Thus, when a consumer orientation is viewed as a means of ensuring that the enterprise's products meet the consumer's expectations and expectations, it does not mean the need to outpace or outpace competitors. Because consumer expectations are, to a large extent, dependent on what competitors offer them. It is also wrong to change the consumer orientation of marketing to competitors. Because being an enterprise leader in competition means better than its competitors, it also means better understanding of consumer needs. An attempt to organize a business more efficiently by shifting focus from consumer to competition can lead to certain advantages over competitors. These advantages will be in addition to the advantages revealed by the consumer's orientation, which will be either undesirable or less desirable. In fact, the enterprise does not need to outpace its competitors in all its supply parameters. He needs to overcome his competitors in settings that are of importance to the consumer. What parameter is more important and important to the consumer can be determined by the consumer orientation. The emphasis on competition, rather than on consumers' needs, is the result of its overstatement. Therefore, the enterprise must continuously monitor the competition and at the same time not overlook the consumer's needs. The competitive research process results in the development of a competitive strategy. The development of a competitive strategy involves four stages:

1) defining the characteristics of competition;

2) collecting and analyzing competitors' information;

3) identification of possible variants of competitive strategies; and

4) selection of a competitive strategy or strategy.

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