Competitive advantage can be explained as the ability of a firm to perform its operations in a way that competitors cannot match (West, Ford, & Ibrahim, 2015). Therefore, the company will enjoy some advantage over the competitors by offering its consumers high value. The company can decide to lower the prices of its products. Similarly, it can choose to provide more significant benefits and services that will justify the higher prices it charges its customers. However, it is possible for companies to achieve sustainable competitive advantage. Companies that strive and succeed to build competitive advantages always ensure they deliver high customer value and satisfaction. Customer satisfaction will result in high repeat purchases that will intern lead to high company profitability. Therefore, the company will benefit from the increased sales, and this will generate a lot of revenue for the company. Also, they can build competitive advantage over other by differentiating their products and service (West, Ford, & Ibrahim, 2015). Differentiation will satisfy the customers and give the business a new look. The goods and services can be differentiated in terms of quality, after-sale services and other special features.
Companies such as Netflix, Starbucks, Walmart, Tivo and Apple’s iPad have a competitive advantage over each other in the following ways. The companies enjoy advantages over other in terms of products offered, services and prices. Netflix is a dominant player and is regarded as the only company that offers an extensive selection of movies, and TV shows online to its customers by subscription (Fritz, 2011). Similarly, its sophisticated software recommends what the customer might like to watch. Therefore, the other companies such as Google Inc, Walmart, YouTube, Apple Inc do not have subscription services; hence they do not pose any threat to Netflix. However, Apple produces high-quality devices that portray a sustainable competitive advantage over other firms. The Apple’s devices such as iPad, iPhone and iPod use Ios whereas competitors in the market produce devices that use operating systems that include Android, Linux and Windows.
Fritz, B. (2011, April 23). Netflix’s days without competition may be numbered. Los Angeles Times. Retrieved from http://www.articles.latimes.com/2011/apr/23/business/la-fi-ct-netflix-20110423.
West, D., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press.
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