Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?




Competitive Advantage
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Andrew Blaine
Business Consultant, South Africa

Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?

COST and VALUE are words used to identify the same quality, but from different viewpoints. The producer/manufacturer concentrates on cost, while the consumer/customer looks at value.
From this analysis comes the amazing range of products that are, essentially, the same - from motor vehicles to orange juices.
It is important that we consider competitive advantage in the same manner - from the viewpoint of both the manufacturer and customer.
By doing this, does the quality aspect become an essential element in the identification of competitive advantage?
 

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Bernhard Keim
Business Consultant, Germany
 

Quality Aspect is Essential

Being cheaper is not a lasting advantage for most businesses. Especially when most competitors follow the same strategy it becomes a race to the bottom line. Revenues must be really high if you want to succeed in this race, otherwise you can't capitalize on economies of scale.

If you are cheap it's hard to become better. If you offer better quality, you always can become cheaper.

 
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Andrew Blaine
Business Consultant, South Africa
 

Price and Value - the Difference

@Bernhard Keim: Thank you for your commentary Bernard, but price and value differ. For example a Mer... Sign up

   

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