Impvantages Of Competitive Advantage In The Retail Industry

When examining competitive advantage, it is also important to consider the market and take into account the existing competition against larger firms.

2.Competitive Advantage – It includes the best product of an Organization in the competitive market.

STRATEGIC LOCATION: When it comes to retail industry the selection of location plays a very important role. Ex. Initially when Wal-Mart was set up by Sam Walton they mainly got success due to their location strategy. They had set up stores i.e. discount centres in rural and small town areas; other reason was strategic placement of distribution centres.

A firm has a sustainable competitive advantage when it implements a value creating strategy that is not being implemented by another competitor and cannot be copied by another firm. As all resources are not of equal importance or possess the potential to be a source of sustainable competitive advantage, it is important to be able to characterize the relevant resources. Barney (1991) suggests that these resources must meet four conditions; value, rareness, inimitability, and non- substitutability. Collis and Montgomery (1995) proposes that these advantage-creating resources meet five tests; inimitability, durability, appropriability, substitutability and competitive superiority.

Another competitive advantage is the excellent customer service as well as the willingness to provide customers with any products they request. Besides, the engagement to support the communities which are served by the store, helped to gain a loyal customer base.

Through an internal environment analysis, companies can identify and understand their own unique resources, capabilities, and competencies that are required for their sustainable competitive advantage. Resources, capabilities, and core competencies are the foundation of competitive advantage. There is no competitive advantages are permanently sustainable in any companies, so they have to consist on their current advantages and develop new advantages by internally understanding and analyzing their resources and capabilities. Competitors have their own unique resources, capabilities, and core competencies to create values for their customers. Both tangible and intangible resources, which include individual, social and organizational phenomena, are combined to generate capabilities. In turn, company’s capabilities are used to build core competencies. Also, core competencies are as a source of competitive advantage for a company to win in the competitive market.

A Competitive Advantage is a peculiarity for an organization between it's competitors . It's achieved either by lowering prices or by greatening the value of the product or by offering luxury service and benefits to cope with high prices .

Competitive advantage is that a company has better ability in earning profit and profit growth compared to its competitors for the same group of customers in one industry.

Competitive advantage(CA) is an advantage competitors gain by providing or offering customers or consumers greater value for their money through product and service differentiation or through lower prices. Maintaining competitive advantage is crucial to many businesses or organizations' success in order to survive in the market. Competitive advantage is characterized by superior performance which could be an attribute to outperform the competitors whether current or potential; or gaining a higher market share in a particular industry thereby ensuring market leadership; or ultimately, maximization of profit.(JOBBER 2010)

When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy competitive advantage in an industry. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage) or deliver benefits that go over those of competing products (differentiation advantage). Therefore, a competitive advantage allows the firm to create superior value for its customers and profits for itself.

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

A company achieves sustainable competitive advantage when an attractive number of buyers prefer its products or services over the offerings of competitors and when the basis for this preference is durable.

In order to achieve competitive advantage, a firm must perform one or more value-creating activity that is more superior compared to other competitors. Superior value is created through lower costs or superior benefits to the buyers.

Most of the businesses operate in competitive markets: businesses have to take on and see of rivals or competitors.ALDI, a

exists when the firm is able to deliver the same benefits as competitors but at a