Answer to Question #226225 in Management for Cyrus

Question

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

Answer 1

The key to corporate success is gaining a competitive advantage. It's the force that allows a company to have more focus, more sales, larger profit margins, and better customer and employee retention than its competitors. It's the most important factor in determining long-term business value, and its what buyers look for when trying to buy a company. You risk becoming another "me too" company that muddles along with subpar results if you don't have a competitive advantage. The four steps a company takes to gain a competitive edge are as follows:

1.     Recognizing the market and its many parts. Look for niches that are underserved by competitors and can be targeted and marketed to profitably.

2.     Developing a value proposition that attracts clients' attention and understanding what they genuinely desire.

3.     Identifying the critical tasks that must be completed flawlessly in order to support and deliver the value offer. Service standards, quality, branding, pricing, and so forth are examples.

4.     Understanding your strengths and core competencies and how to apply them in novel ways to create value to your target market, as well as developing a business strategy to support and deliver the value proposition.