Competitive advantage

Competitive advantage is at the core of winning marketing share and market performance. If a firm lacks a competitive position and competitive advantage, consumers will be drawn to their competitor who offers more perceived value, risking market share.

There are three generic forms of competitive advantage. Cost leadership is where companies achieve competitive advantage through lowest production and distribution costs. The key focus is on cost controls, penetrating the market to build market share, developing production economies of scale, and building strong brand preference and brand equity. Marketing authors suggests Dell as a benchmark for cost leadership.