Reference no: EM132447084
Competitive advantage is nothing but the condition that the business is above its competitors. Competitive advantage is the ability of the firm to increase its values and its shareholders (David & David 2017). It is an essential aspect of business that allows an organization to outperform to gain an advantage over the competitors. This can be achieved by offering higher value to the customers compared to its competitors.
The essential elements that improve an organization's competitive advantage are:
• Improving the product line by offering varieties of products with different features. If the company only stick to provide a single product or service or the products with features, then they might loose on the competitive advantage. It is crucial for the organization to use innovative technology and develop a list of products with a different and unique feature to stay ahead of competitors.
• Cost reduction is another vital element which will help the organization to improve competitive advantage. The organization should improve its manufacturing process, reduce or eliminate unnecessary steps in production, or new revenue model to reduce the cost.
• Employee management is vital as efficient and productive employees are always a competitive advantage for the organization. The organization should focus on training, developing and enriching their employees. They should also take steps to build a strong culture and build relationship among the employees so that they can work collaboratively to exhibit the highest level of performance.
• Customer management is the key to gain and improve the competitive advantage for an organization. The organization should focus on managing their existing customers effectively, and customers are essential for any business. Maintaining the customer base will help the organization to improve its competitive advantage.
Thus, to improve and maintain the competitive advantage, the organization should focus on value creation by offering a variety of products or services, reducing the cost by improving the processes and managing both the employees and customers.
Reference
David, F. R., & David, F. R. (2017). Strategic Management: A Competitive Advantage Approach, Concepts, and Cases (Sixteenth ed.). Boston: Prentice Hall.