The success of any business is determined by its position within the industry of operation. Consequently, to achieve optimal positioning in any given industry, it is crucial to ensure that the firm has a competitive advantage over its competitors by creating superior value in their products. Value creation and competitive advantage are important concepts to incorporate in any business to achieve effective outcomes. It is essential to recognize that there are two types of competitive advantage namely differentiation, and cost advantage. Similarly, a firm can effectively have many competitive advantages and in different areas; such fields include brand management, market share, cost effectiveness, networking, and trademarks and patents among others (Lagunes, 2012). All these areas have their advantages in as far as creating value for a customer is concerned; as such, they can be used as key strategic elements for any company seeking to succeed in a competitive industry.
Optimal positioning is achieved through leveraging a company’s strengths in order to achieve expected outcomes; this involves using resources and abilities to generate a competitive advantage. In turn, the positioning advantage results in superior value creation for the products in any given industry; by facilitating innovation, efficiency, quality, and customer receptiveness, a firm is able to achieve either a lower cost structure or a differentiation of product. These two aspects are critical in establishing a competitive advantage considering that they allow a company to be able to provide similar benefits as those given by their competitors, but at a lower cost; additionally, they can ensure that the benefits go over those of competing products (Lagunes, 2012). Evidently, a competitive advantage plays a significant role in creating superior value for its consumers and at the same time, get revenue, and profits to keep its operations running and to ensure continued success.
References
Lagunes, S. G. (2012, July). Value creation and competitive advantage. In Technology
Management for Emerging Technologies (PICMET), 2012 Proceedings of PICMET'12:
(pp. 531-540). IEEE.
