Answer to Question #226194 in Management for ArrowPratt

Question

In determining purpose of the existence of a business, examine the four steps that a business goes through to achieve a competitive advantage

Answer 1

Step 1

Cost leadership-it is the ability to offer same products as the competitors at a lower price through perfection of quality by effective production methods.

Step 2

Differentiation-Setting new standards compared to those of competitors through research come up with the things that customers value.

Step 3

Defensive-the ability to use the already gained position as an advantage to achieve more compared to your competitors.

Step 4

Joint ventures-Convincing your competitors to join you to acquire more advantages to control the market.