Competitive advantage in different types of markets
Competitive advantage in different types of sectors
10.- TYPES OF COMPETITIVE ADVANTAGE
We can determine two types of competitive advantages through which an enterprise can achieve benefits. Both enterprise strategies have the same objective: to place themselves in the mind of every client and thus achieving greater benefits. These two types of competitive advantages are based in:
• costs, the market is offered the same product as the competition, but at a considerable lower price.
• differentiation, the enterprise places a product or service in the market. This product or service is different than that offered by the competition. As a result, the client is willing to pay more for that noted difference.
Both sources are the essence of enterprise strategies and are practically the opposite of one another. They differ in organizational structure, resources, capabilities, etc. In spite of dedicating two large blocks to each one of these types of competitive advantages, the main characteristics of competitive advantage in costs and differentiation are shown here in a chart.