Competitive Advantages

Date:  2021-03-12 23:13:38
3 pages  (688 words)
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Competitive advantage primarily establishes and distinguishes a company from other rival enterprises thus according to it some distinct features in the minds of its clients. According to Ian Chaston the core resource book here it is explained that a company that flourishes from competitive advantages manages to establish more value and keeps a significant position than the other competing brands at its level (Chaston, 2012). Thus, there is a need to formulate some distinct competitive advantage strategies for the success of every company. Organizational differences approach stands as the most different formula of maintaining and gaining from the competitive advantage. Organizational differences involve establishing a detailed categorization of the major strengths and weaknesses within a company. Moreover, organizational differences are essential for every business because it explicitly draws out the merits and demerits possessed by a corporation in an absolute sense to other competitors.

Similarities and Differences

Sustainable competitive advantage and competitive advantage are two different approaches to formulating a company's strategies. Competitive advantage refers to a particular thing that a company does which distinguishes them from their competitors. On the other, hand sustainable competitive advantage is a particular thing that a company does and ensures that it goes on forever.

Both competitive advantage and sustainable competitive advantage establish one unique similarity explaining that both approaches profit maximization strategies. However, for them to become functional, they ought to be formulated and implemented wisely. Consequently, the two business procedures have some differences. First, competitive advantages are formulated to serve a shorter period while sustainability establishes that a company formulates strategies that can be used for a very long time sometimes forever. Secondly, competitive advantage strategies can be shared. Thus, they cannot be kept as a secret weapon for the company's benefits (Chaston, 2012). However, sustainable competitive advantages prove to be of tacit knowledge which is difficult to transfer and even if it is shared the other person can never match the prowess of the original implementer. Lastly, the sustained competitive advantage has a resistant culture to changes while competitive advantage has a more innovative culture which embraces change each time a different strategy proves to be more beneficial than the previous one.

Section 2

2.1 Value creating strengths and weaknesses for Stimulus Advertisers

Stimulus Advertisers are the biggest advertising agency in Nepal. Therefore, with AIDSCAP decision to use it in their promotion plans means that several value-creating strengths and value reducing weaknesses should be evaluated. On the value creating forces approach it is clear that Stimulus Advertisers have a considerable reputation for its being in operation for more than a year (Sriram & Franklyn, 2008). Reputation has proven to record more value as a strength and moreover it is a sustainable competitive advantage. Also, with the facilities that AIDSCAP is acquiting it, then it ought to report excellent reports during and after the intended promotion duration. Having state of the art facilities at hand provides them with a rare opportunity that can be sustained as long as the whole procedure will be in operation.

Moreover, Stimulus Advertisers have a record of a healthy entrepreneurial culture in the Nepalese region. Maintaining a healthy corporate culture is one of the most difficult tasks that any company can face. Nonetheless, it is proven that with proper strategies this strength can be implemented for the longest time possible. Lastly, the management of this agency including Lama is experienced in their work (Sriram & Franklyn, 2008). Although having an active control is not a rare occurrence there is need to maintain it through the implementation of proper strategies in a business which has proven to have plenty of sustainable competitive advantages. Nonetheless, there is a few value reducing weaknesses accrued to stimulus Advertisers. Firsts of all their plans are vulnerable to becoming unsuccessful due to the diverse cultures in the Nepal region. Moreover, with considerations that they are working on a specified budget means that they can under deliver from underestimation of the actual expenses that they might incur during the whole process.

References

Chaston, I. (2012). Strategy for Sustainable Competitive Advantage: Surviving Declining Demand and China's Global Development. London: Routledge.

Sriram, V., & Franklyn, M. (2008). AIDSCAP Nepal. New York: Morgan State University.

 

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