BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A superiority gained by an organisation when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation
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A technique widely used by production management and management accountants. It is based on categorising production costs between those which are “variable” and those that are “fixed”
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An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company’s products
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Peppa Pig
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Detailed explanation-1: -What Is a Competitive Advantage? Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.
Detailed explanation-2: -To achieve a competitive advantage, the firm must perform one or more value creating activities in a way that creates more overall value than do competitors. Superior value is created through lower costs or superior benefits to the consumer (differentiation).
Detailed explanation-3: -Your competitive advantage is the combination of marketing elements that sets your business apart. It’s about the unique benefit customers get when they do business with you.
Detailed explanation-4: -The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.
Detailed explanation-5: -There are three main types of sustainable competitive advantage: differentiation, cost leadership, and focus advantage.