Factors that cause a competitive advantage

6 Mar 2019 03:26 PM

Competitive advantage refers to the characteristic that characterizes the institution from other competing institutions, and it has a strong attitude towards the different parties. An enterprise can achieve competitive advantage in many ways, but the most important of all is that the enterprise has low costs. Competitive advantage may last for a short time or persist for several years. Competitive advantage arises as a result of internal factors or external factors that we review together as follows:

Internal factors: Internally, the competitive advantage of any organization is based on a number of distinct capabilities. The institution's employees must be well acquainted with these capabilities, capabilities and resources in order to achieve competitive advantage. For example, an institution that exploits its capabilities Such as the machinery or skills of the workers or the capabilities of sales men compared to the institution does not recognize these capabilities and underestimate the value required for example: Trader who imported the latest technology required in the market faster than others was able to create a competitive advantage through the rapid reaction to the change of technology O and market needs. This shows the importance of the institution's ability to quickly respond to external variables, and this depends on the flexibility of the institution and its ability to follow the variables by analyzing information and predicting changes.

External factors: The external dimension is about the fact that there is no competitive advantage without the ability to restrain external parties and deal with them firmly on the basis of strength, control and stability. It is the ability of an organization to acquire resources and build capabilities that are not available to other competitors. Innovation and innovation play a major role in creating a competitive advantage. Creativity here is not limited to the development of the product or service, but includes innovation in strategy and creativity in the work method or technology used and creativity in creating a new benefit for the customer.


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