What is competitive advantage in business? скачать в хорошем качестве

What is competitive advantage in business?

Wharton Professor Nicolaj Siggelkow explains how having a competitive advantage helps a business. "A firm that wants to create a competitive advantage basically has to create a bigger wedge between, on the one hand, the willingness to pay it that customers have for their product, and, on the other hand, the cost that they incur to create that particular value in the eyes of the customers. There are basically two sources of competitive advantage. On the one hand, you drive up the value that customers see in your product. That may be through R&D, adding new features, or that may be by creating complements that help that customer enjoy your product more. On the other hand, there are ways of how you might be able to become more efficient. Maybe you have big scale economies that allow you to drive down your costs, or there may be network effects that both allow customers to enjoy the product more while actually allowing you to create that product or service at a lower cost. Fundamentally, there are two sources of competitive advantage: the value that customers see and the cost that you incur." Professor Siggelkow is co-academic director of Wharton Executive Education's Strategy and Management for Competitive Advantage program (https://whr.tn/2tMrAGi).