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

Competitive Advantage
Knowledge Center

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?

  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.

  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 Mercedes costs more to ...


More on Competitive Advantage:
Life Cycle Approach to Competitive Advantage
Focus your Efforts in Building Competitive Advantage
Competitive Advantage in Tough Times
🔥Is Superior Value to Customers a Competitive Advantage?
Knowledge Management is more important than CA
Why are Firms Different? Why Successful Firms Differ?
👀Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?
Successful Companies: Only Three Rules Needed?
The Role of AI in Competitive Advantage
Best Practices
Quotes Competitive Advantage
10 Routes to Competitive Advantage
Case studies in "Cost Leadership"
Stuck in the Middle?
How Can Logistics Help to Achieve a Competitive Advantage?
Changing from a Cost Leadership Strategy Into Differentiation
Competition versus Cooperation
Competitive Advantage or Die?
What is Competitive Advantage?
Competitive Advantage in a Monopolistic Market?
Health/Fitness Club Industry Analysis
What are the Risks of a Differentiation Strategy?
Weaknesses of Porter's Three Basic Types of Competitive Advantage
4 Stages of Hypercompetition
Special Interest Group

Do you have a keen interest in Competitive Advantage? Become our SIG Leader

Competitive Advantage
Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2022 12manage - The Executive Fast Track. V15.8 - Last updated: 17-8-2022. All names of their owners.