Product/Service Differentiation
Another way that companies can have a competitive advantage in the marketplace is through product/service differentiation. If a company's product or service has a valuable, unique offering for its consumers, then loyalty and product/service differentiation can occur. Cost competitive advantages can easily disappear with the introduction of a new competitor or new technology. If a company offers a unique product or service, it is harder to maintain an edge in the market based on price alone. The company must offer something to the consumer besides just a low price.
Offering kiosks and self-checkout lanes are methods companies use to keep costs down New Delivery Methods
Some companies offer excellent product reliability, such as Honda; an American-made image, such as Harley-Davidson; a valuable brand name, such as Rolex or even excellent service, such as Mercedes-Benz. For companies to excel in this area of competitive advantage, they must constantly look for ways to create new products and innovations that solve customer needs and wants. A customer has to want their product or service because it offers something that they cannot get by going elsewhere - something very different.
Product/Service Differentiation
Another way that companies can have a competitive advantage in the marketplace is through product/service differentiation. If a company's product or service has a valuable, unique offering for its consumers, then loyalty and product/service differentiation can occur. Cost competitive advantages can easily disappear with the introduction of a new competitor or new technology. If a company offers a unique product or service, it is harder to maintain an edge in the market based on price alone. The company must offer something to the consumer besides just a low price.
Offering kiosks and self-checkout lanes are methods companies use to keep costs down New Delivery Methods
Some companies offer excellent product reliability, such as Honda; an American-made image, such as Harley-Davidson; a valuable brand name, such as Rolex or even excellent service, such as Mercedes-Benz. For companies to excel in this area of competitive advantage, they must constantly look for ways to create new products and innovations that solve customer needs and wants. A customer has to want their product or service because it offers something that they cannot get by going elsewhere - something very different.
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