Winning business strategies are grounded in sustainable competitive advantage.
A company has competitive advantage whenever it has an edge over rivals
in securing customers and defending against competitive forces. There are
many sources of competitive advantage: making the highest-quality product,
providing superior customer service, achieving lower costs than rivals, having
a more convenient geographic location, designing a product that performs better
than competing brands, making a more reliable and longer-lasting product,
and providing buyers more value for the money (a combination of good quality,
good service, and acceptable price). To succeed in building a competitive
advantage, a firm must try to provide what buyers will perceive as "superior
value"-either a good product at a low price or a "better" product that is worth
paying more for.