competitor analysis and competitive advantage
Marketing-orientated businesses need to do more than just meet customer needs. To succeed and prosper, a business also needs to meet customer needs and wants better than the competition. In other words - the business needs to seek competitive advantage.
A competitive advantage is a clear performance differential over the competition on factors that are important to customers
Competitor actions have a direct effect on the profitability of a business. These may include:
• Price cuts
• Launching a rival product
• Aggressive expansion of production to increase market share
• Inclusion of significant (possibly costly) modifications to a product which other competitors must also undertake
The diagram below shows the impact of varying levels of competitor action
on the profits of a business:
Marketing Glossary |
|||||||||
J |
|||||||||
K |
|||||||||
X |
Y |
Z |
|
|
|
|
|||
tutor2u is the leading global publisher of e-learning resources for Economics, Business, Politics, Enterprise, Law, Sociology, Religious Studies and related subjects. Our materials are used by over 3,500 schools and colleges in the UK and in educational institutions in over 85 other countries. tutor2u offers a range of free and subscription-based materials - designed to support teachers and inspire students. The business also runs a popular series of student revision workshops and teacher conferences. tutor2u was named Online Learning Resource of the Year at the prestigious BETT Show - the World's leading educational show.
|
Privacy & terms of Use |
Contact us |
Teacher Newsletters & Subject Blogs |
