The concept of competitive advantage in strategic management refers to the advantage over the opponents that is achieved by providing the consumers with a higher value. As defined by Dess et al., it can be implemented by lowering the prices or offering greater benefits and services that validate higher prices. Paul Robinson outlines three steps to create a competitive advantage for the organization systematically and straightforwardly. The idea of the potential competitive advantage should be communicated to the employees, as well as the customers. Management insights by Robinson highlighted in the Positive Revolution’s video are focused on the uniqueness of the advantage that a company has over competitors that offer similar goods or services. More importantly, it allows the enterprise to produce higher sales volumes or engage more customers.
The first step is making a brag list, including the big claims made through the marketing messages, advertisements, or sales pitches. This step implies an adequate understanding of the business process and key activities that the business is proficient at. The second step is listing the things that competitors do well to differentiate themselves from the competition. This facilitates a better understanding of the strong and weak points of the examined organization. After that, one should cross out the similar activities that both the company and its competitors perform well to identify the exclusive claims. The third step discussed in the video is the fresh list of exceptional claims that define two to three unique competitive advantages valued by the customers. The unique claims defined through this three-step model have to be supported by the quantifiable data so they can be considered competitive advantages. With that said, determining the competitive advantage to enhance one’s business outcomes is a dynamic process that requires constant attention and improvement to maintain its sustainability.
Works Cited
“How to Develop Competitive Advantage for Your Business?” YouTube, uploaded by Positive Revolution, 2017, Web.
Dess, Gregory, et al. Strategic Management: Text and Cases. 9th ed., McGraw-Hill Education, 2018.