3.3.5 Value and Competitive Advantage

For this activity:

You will need to write down your answers in your Mahara e-portfolio.

We have learned in this theme that competitive advantage is the organisation’s ability to add more value for its customers than a competitor and therefore attain a position of relative advantage.

For the following questions, write your answers in an essay style including as much detail and examples to illustrate you points as possible. If you use any information you have seen on a website or other source, remember to include a reference to show that you have used someone else’s work.

Questions:

1.    How can a firm create and sustain competitive advantage in its industry?

2.    Do you think there are any risks associated with an entrepreneurship adopting a cost leadership strategy?

3.    What are the possible advantages for an entrepreneurship if it adopts the focused strategy?

4.    Can a firm decide to adopt a combination of different strategies? For example, it wants to be the cost leader yet offer differentiated quality products and services.