How can entrepreneurs create a sustainable competitive advantage in their industry?

If a company can offer high value and good quality without compromising on price, that can create a great sustainable advantage. If they can effectively take advantage of economies of scale, the competition will not be able to keep their market share, since their prices make them suppliers of goods and services at low cost. A company enjoys a competitive advantage when it offers its customers benefits similar to those of its competitors, but at a lower price. This is because it manufactures its products at a much lower cost compared to competitors.

The lower cost of production gives you the cost advantage, allowing you to set lower prices for your products than those of the competition. A competitive advantage is anything that allows a company to surpass other companies in the same industry or sector (its competitors). A sustainable competitive advantage is one that lasts in the long term. Sustainable competitive advantage describes the company's assets, capabilities, or attributes that are difficult to duplicate or exceed.

The qualities of these attributes allow the company that possesses them to enjoy a superior and long-term position in its market or industry. In business theory, sustainable competitive advantage is associated with cost leadership, differentiation, or focus on costs. A company that uses a focus on costs as a sustainable competitive advantage understands and serves its target market better than anyone else. Coffee Day has clear advantages in its menus that change continuously depending on the seasonality and changing preferences of its customers.

In the last strategy article, Competitive Advantage, the Messi of your business, I talked about competitive advantage and the two types, that is, Walmart and Costco, are two examples of the sustainable competitive advantages that result from cost leadership. The company's values and the corporate culture created must also be aligned with those objectives. Porter suggests a way to review its matrix by incorporating a cost source and a differentiation advantage juxtaposed with the wide and narrow markets in which the company competes. A brand that attracts its customers just because of its reputation is powerful, but it can be a fragile asset if this reputation is not maintained.

BMW, which is already famous for its products, has a history of having a competitive advantage when it comes to automotive performance. Of course, the high level of customer experience must be maintained over time for competitive advantage to be sustainable. While writing the textbook, Porter researched hundreds of companies to identify what provided them with a long-term competitive advantage. In the case of Coffee Day, its plantations, healing centers and research laboratories have been transformed into strategic assets, giving it a clear competitive advantage.

If a brand has products and services that can change with the needs of the market, instead of remaining static, it can outperform the competition more effectively over time. Chinese companies are globally competitive because the standard of living is low in China, which means that companies can pay their workers less.