Competitiveness | tutor2u Business
Study notes


  • Levels: AS
  • Exam boards: AQA, Edexcel, OCR, IB

Competitiveness can be defined as:

The ability of a business to deliver better value to customers than competitors

A key part of all business activity – in which marketing plays a key role – is the search for sustainable competitive advantage. This phrase means exactly "what is says on the tin".

Competitive advantage means:

  • The ability of a business to add more value for its customers than its rivals and attain a position of relative advantage
  • A situation where a business has an advantage over its competitors by being able to offer better value, quality and/or service

The key word in the bullets above is "value". Value is what a customer is prepared to money for. A business that offers better value than competitors will enjoy an advantage.

A good way to think about value is to consider a purchase that you have made which, looking back, you consider to be good value. What was it about that purchase that you feel happy about?

  • The price you paid?
  • The features or benefits that you obtained from the product
  • The enjoyment or satisfaction you have gained from owning or experiencing the product?
  • The time you have saved?

A customer's perception of value is very personal. It is usually based on several intangible factors as well as tangible factors. The hard bit for a "competitive" business is to work out what you as a customer value – and then deliver that to you!

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