Competitive Advantages Flashcards
1
Q
4 Types of Sustainable Competitive Advantages
A
- Unique selling proposition
- Lower production costs
- Serving a niche market
- Creating customer loyalty
2
Q
Unique Selling Proposition
A
- Something that can’t be copied by another firm (e.x. Patented tech/ exclusive distribution/ knowledge)
- Ex. Pharmaceuticals, Google Driverless Car
3
Q
Lower Production Costs
A
- Cost efficient
- Ex. Honda Plant in Canada vs. U.S.
4
Q
Serving a Niche Market
A
- Specializing in a very small, specific aspect of the market
- Ex. pet hotel, wine seller architect
5
Q
Creating Customer Loyalty
A
- Building personal relationships
- Ex. Favourite restaurant, mechanic, hair stylist
6
Q
Competitive advantages that can be easily copied:
A
- Promotion
- Placement/ location
- Price
- Quality
- Benefits of use
- Design features
7
Q
Competitive Advantages for Services
A
- Convenience
- Degree of service
- Personalized treatment
- Selection
- Reputation
- Price
8
Q
Product Service Mix
A
- When both a product and service are provided
- Ex. Home Depot, IKEA
9
Q
Market Share
A
- The percent of competitive market that a specific product or service controls
- Ex. Beverages, fast-food, airline, shoes
10
Q
Market Segment
A
- A narrower portion of a specific market share (defined by a particular characteristic)
- Ex. Juice is a market segment for the beverage industry
