Buy custom Competitive Advantage
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
13 / 3388 |
Essay's paper body
Sabre system had competitive advantage as it exhibited restraints on competition by being early player in the market, the market size was big and with deregulation the momentum was high.
Sources of Competitive Advantage
- External Sources:
- Customer Relations:
- Brand loyal customers
- Long-term relationships
- Barriers to brand switching
- Legal:
- Patents & trademarks
- Tax advantages
- Zoning laws
- Global trade restrictions
- Supplier Relations:
- Agreements & relationships
- Internal Sources:
- Product Related:
- Brand equity; Exclusivity
- Quality & features
- Price Related:
- Costs/economies of scale
- Promotion Related:
- Image, budget, salesforce
- Distribution Related:
- JIT, EDI, location
- Other:
- Management; R&D
The nature and period of competitive advantage can be well explained by Diffusion Theory
The figure explains that a business enjoys maximum competitive advantage when the base of competition is low...
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The more one meets the customers expectations the greater is his advantage. This is possible either when one is an early entrant or
enjoys prime position in one of the above mentioned sources. But nothing lasts for ever, as the market matures there are new entrants and it posses a threat to the competitive advantage...
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