BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A strategy is a set of related actions that managers take to increase their company’s performance. For most, if not all, companies, achieving superior performance relative to rivals is the ultimate challenge. If a company’s strategies result in superior performance, it is said to have a competitive advantage.

Detailed explanation-2: -Definition. Competitive advantage means superior performance relative to other competitors in the same industry or superior performance relative to the industry average.

Detailed explanation-3: -For the business firm, superior performance has a clear meaning: It is the ability to generate high profitability and increase profits over time. A central task of managers is to pursue strategies that enable their firm to attain superior performance, measured by profitability and profit growth.

Detailed explanation-4: -Differentiation refers to the strategy where competitive advantage is based on superior products or service. Superiority arises from factors other than low cost, such as customer service, product quality, or unique style.