Competitive Advantage


In the business world, competition is one of the obstacles which the businessmen need to contend with to ensure sustained higher profit margins (Huggins & Izushi, 2011). Effective control and management of the competition requires the businessmen to be proactive in their market evaluations rather than being retroactive. An apt market changes evaluation of consumer tastes and preferences enhances the business ability to serve their customers in a better and most efficient way.

Competitive advantage

Michael porter outlines the competitive advantages to be divided into two major groups, the cost competitive advantage and the differential competitive advantage. The cost competitive advantage results when the business is able to sell similar products in terms of quality and quantity but at a lower cost compared to the competitors. On the other hand, the differential competitive advantage majorly concerns the provision of unique product features which best fits the customer emergent needs and preferences (Porter, 1998).

The differential competitive advantage has been greatly manifested in the telephony industry. The identification of the customer need to change from the land line telephones to the portable mobile telephony gave some businesses a huge catch in the provision of the same products. In fact, Nokia, Samsung and Motorola companies have been noted to make huge amounts of profits for having been able to identify these customer needs in time and design mobile phones to match the needs (Huggins & Izushi, 2011).

One other most important invention of the human life time is the invention of the sliced bread from the previously unsliced one. Many customers were actually in preference of the more convenient and easy to use sliced bread as opposed to wholesome bread. As a result, many companies which identified with the same customer need in time were able to make great volumes of sales as people showed great preference to the new trend in the bakery industry.


At the end of the day, the business which is having the most accurate future focus will be able to identify the future market need and design products to match the customer need. This will give them advantage over the other competitor company which is not able to identify the same in time.

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