Question

Discuss the three general approaches to developing competitive advantage.

Answer 1

1) Target market to be covered

One should know well in advance about their customer need and their price paying capacity. This will help in assessing the demand.

2) Benefit your product and services provides

It should be carefully checked what benefit your product and services provides, What value it provides to the potential customers. This will help in achieving competitive advantage.

3) Understanding your competitors

Understanding the product and service of your customers and their prices is of crucial importance. What additional benefit you can provide in addition to your competitor will provide you competitive advantage. Also pricing strategy is determined on the basis of competitors price.