Market advantage
From CEOpedia | Management online
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Market advantage is competitive advantage on local and global markets with additional ability to win with the competition, Sources of market advantage can be found in the activities that lead to the creation of value for which the ultimate beneficiary is the customer. In the literature we can find many interpretations of the sources of market advantage:
- Strategic resources (assets)
- Architecture (the system of relations with suppliers and internal organizational structure)
- Innovation (the ability to enact new technical, organizational and economic solutions)
- Reputation
- Time (shortening research, development and implementation processes in the company)
- Possibility of geographical dispersion in various fields of activity
- Quality (value of product determined by the customer - user)
Current scope of market advantage can be determined by:
- identification of competitors and operationalization of the areas in which company compete with them
- pricing of company competitiveness,
- determine the relative rating of company against competitors
Market advantage is achieved by a company whose employees have the relevant expertise. The advantage may be obtained by shortening product life cycles, accelerate technology development, improving the coordination of marketing, production, development and increasing the efficiency and speed of development.
References
- Yeniyurt, S., Cavusgil, S. T., & Hult, G. T. M. (2005). A global market advantage framework: The role of global market knowledge competencies. International Business Review, 14(1), 1-19.
