| Competitive advantage is the favorable position an organization seeks in order to be more profitable than its rivals. To gain and maintain a competitive advantage, an organization must be able to demonstrate a greater comparative or differential value than its competitors and convey that information to its desired target market. For example, if a company advertises a product for a price that's lower than a similar product from a competitor, that company is likely to have a competitive advantage. The same is true if the advertised product costs more, but offers unique features that customers are willing to pay for. In the 1980s, professor Michael Porter from the Harvard Business School looked at successful businesses and created a framework for how leaders could think strategically about beating the competition. Porter suggested that companies analyze five important criteria, which Porter called the Five Forces, to gain an understanding for the competitive landscape. Once that had been achieved, he recommended the use of three generic strategies to help leadership make the best choice about which type of competitive advantage they should pursue. Porter's Five Forces is an alternate model to SWOT (Strengths, Weaknesses, Opportunities, Threats) an analysis tool which is credited to Albert Humphrey at the Stanford Research Institute to help companies get a sense of their position within a competitive landscape. Porter taught his students at Harvard about SWOT analysis, but felt the tool had limitations because it placed too much focus on individual companies rather than on industries. Porter saw the need for a framework that also looked at the competitive landscape holistically, in the context of an entire industry. The simple framework that Porter developed for achieving a competitive advantage in the marketplace is still being taught in business schools today. Read more...
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| | Writing for Business | Digital transformation is tied to the broader trend of business transformation and takes ______ to take hold. A. awhile B. a while Answer | |
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