Answer to Question #236793 in Management for Saider

Question

Explain three (3) ways in which the top management of Blueline Luxury Yachts can build a competitive advantage for the business

Answer 1

Businesses gain a competitive advantage by outperforming their competitors in certain areas. Businesses can create a valuable differentiator for customers by doing some things far better than competitors. Blueline Luxury Yachts' top management should ensure that the company achieves cost leadership through large-scale production, which allows companies to take advantage of economies of scale. If a corporation can take advantage of economies of scale and create products at a cheaper cost than its competitors, it can set a selling price that no one else can match.

A differentiation strategy should be adopted by the managers. The products of Blueline Luxury Yachts will be distinct from those of its competitors. This will be accomplished through providing customers with high-quality products or services, or by developing new products or services. If a corporation is effective in differentiating itself, it will be able to charge a premium for its products or services. Besides, Blueline Luxury Yachts will focus on a certain market segment using a focus strategy. If the corporation can successfully design items that cater to these clients, this strategy will be successful. The company will be the lowest-cost producer in a certain market niche, with unique products.