Competitive advantage, Slides of Business

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COMPETITIVE

ADVANTAGE^ How do businesses create a competitive advantage over their

competitors?

LEARNING INTENTION

To understand what competitive advantage is

and how businesses use it to outperform

competitors.

WHAT IS ‘COMPETITIVE

ADVANTAGE’?

A factor that allows a business to perform better than its competitors and attract more customers.

TYPES OF COMPETITIVE ADVANTAGE

Examples:

• Apple – design and innovation
• Kmart – low prices
• Nike – strong brand
• Netflix – convenience

Cost Advantage: selling products

cheaper

Differentiation: offering something

unique or higher quality

STRATEGIES TO GAIN A COMPETITIVE ADVANTAGE

• (^) Lowering prices
• (^) Innovation
• (^) Advertising and marketing
• (^) Offering consumers better quality or better perceived quality
• (^) Being more responsive to customer needs

AN INTERESTING HISTORY… Marketing, brought to you by Edward Bernays. Edward Bernays’ 1929 ‘Torches of Freedom’ campaign rebranded cigarettes as symbols of women's liberation to boost sales for the American Tobacco Company (ATC). By staging female debutantes smoking during the New York Easter Parade, Bernays successfully challenged social taboos, equating public smoking with equality and empowerment. Read more at: https://omeka.uottawa.ca/jmccutcheon/exhibits/show/american-w omen-in-tobacco-adve/torches-of-freedom-campaign

• (^) What were Bernays’ methods during this campaign?
• (^) Did this create a competitive advantage for ATC? Why/why not?
• (^) Was ATC genuinely concerned with women’s ‘liberation’, or perhaps an untapped market gap?