Is Superior Value to Customers a Competitive Advantage?

      
			              Forum
			            
							              10

		            		Kurai Chitima
Business Consultant, South Africa
			            
Is Superior Value to Customers a Competitive Advantage?

	          		🔥NEW Could superior value to customers imply competitive advantage? Considering that competitive advantage is achieving superiority over rivals.
				      
X

							  			Welcome to the Competitive Advantage forum. The topic being discussed here is: "Is Superior Value to Customers a Competitive Advantage?". 
										
Get access to all of our 900 knowledge centers about management.  Join more than 1,000,000 other members. 

										Log in

Comments

																	  	Sort by date
																	  	Sort by rating
																		
Rating

										              1

						            	Warren D. Miller, CPA, CFA
Strategy Consultant, United States
												
				                Providing Superior Customer Value Creates a Competitive Advantage

													Yes, Kurai, providing superior value--in whatever form--to customers would create competitive advantage. The challenge for the provider, of course, is to remember that companies are constantly evolving. The metaphor I use is looking at the planet Saturn through a strong telescope. I've done that, and Saturn, with its beautiful rings, is truly a spectacular sight. But if you look away from the planet to have a short conversation with a colleague or companion, then when you look back through that telescope again, Saturn is nowhere to be seen. In free markets, everything is also constantly evolving.
				                
										              2

						            	Jaap de Jonge
Editor, Netherlands
												
				                Is Superior Value to Customers a Competitive Advantage?

													Agree with Warren. Superior Customer Value is definitely a competitive advantage. It is in fact one way of accomplishing one of its 3 main forms, being "Differentiation". See the Summary of competitive advantage.

So far that is perfectly clear and simple. But note that actually achieving this is not!

And even if your firm manages to deliver superior customer value, a key issue remains if you can keep on doing that, in other words are you able to provide a sustainable competitive advantage. Because it is really hard to keep on providing superior customer value over time (just like keeping Saturn constantly in focus of your telescope requires constant adjusting).

Moreover, the competition is not standing still. If you are successful with your competitive advantage, other companies will try to emulate and even surpass you.
				                
										              1

						            	John Henry
Project Manager, United States
												
				                Components of Customer Value and Competitive Advantage

													Fully in agreement with Warren and Jaap. This value may have more heads than a hydra however:

  Q... Sign up
				              
										              1

						            	Gautam Mahajan
CEO, India
												
				                Customer Value Added

													Customer Value Added is the ratio of the Value your company adds to your customers, divided by the V... Sign up
				              
										              1

						            	Jaap de Jonge
Editor, Netherlands
												
				                Customer Value Added Expresses a Customer Value Advantage

													@Gautam Mahajan: Interesting! I understand that one can "calculate" (with many intangibles) this rat... Sign up
				              
										              1

						            	Anand Brambha
Consultant, South Africa
												
				                Is Superior Value to Customers a Competitive Advantage?

													Superior value to customers is providing them with outstanding products, outstanding quality, and ou... Sign up
				              
										              2

						            	Maurice Hogarth
Consultant, United Kingdom
												
				                Provide what the Customer Needs (and not More)

													@Anand Brambha: Some good points. Consider:
- "Quality" is what is required to do the job that the ... Sign up
				              
										              2

						            	Gautam Mahajan
CEO, India
												
				                Why Customer Value Added Increases Competitive Advantagew

													@Jaap de Jonge: First, a positive Customer Value Added makes more people buy from you. Thus you incr... Sign up
				              
										              0

						            	Iulian Ursache
Management Consultant, Canada
												
				                Superior Value to Customers as Competitive Advantage

													Chasing Superior Value to Customers is a very popular and very obvious approach used by organ... Sign up
				              
										              1

						            	Robert Versteeg
Management Consultant, Netherlands
												
				                Two Sources of Real Competitive Advantage

													I would like to agree. However research I've studied shows it is not as one dimensional as stated. H... Sign up
				              
										              1

						            	Krista Decat
Manager, Belgium
												
				                How to Focus on Strategic Learning

													@Robert Versteeg: Interesting approach to this matter. Especially the continuous learning part, whic... Sign up
				              
										              1

						            	Warren D. Miller, CPA, CFA
Strategy Consultant, United States
												
				                Is Any Sustainable Competitive Advantage Possible?

													@Krista Decat: Thank you for your interesting comment. For starters, I question the use of the word ... Sign up
				              
										              1

						            	Robert Versteeg
Management Consultant, Netherlands
												
				                Understanding What's it Worth to your Customer

													@Krista Decat:  A continual improvement process, also in literature often called a continuous improv... Sign up
				              
										              1

						            	Krista Decat
Manager, Belgium
												
				                Customers and Providers

													@Warren Miller, CPA, CFA: Thank you for your reply and I hope that I will be able to clarify some as... Sign up
				              
										              1

						            	martin Anih
Management Consultant, Nigeria
												
				                Continuous Customer Satisfaction is Challenging

													@Anand Brambha: Well said Anand, customers and companies have different satisfactions to actualize. ... Sign up
				              
										              0

						            	Warren D. Miller, CPA, CFA
Strategy Consultant, United States
												
				                Reply To: Martin Anih

													@Krista Decat: My comments are below, Martin:
When you mention that 'the aim of every business is t... Sign up
				              
										              0

						            	John Henry
Project Manager, United States
												
				                Superior Customer Advantage

													If you do not provide superior customer advantage to the people you provide goods or services for in... Sign up
				              
										              3

						            	Maurice Hogarth
Consultant, United Kingdom
												
				                Who Decides 'Superior', on what Basis?

													Q) "Does superior value to your customers mean a competitive advantage?"
A) Yes.
Q) How do you det... Sign up
				              
										              1

						            	Warren D. Miller, CPA, CFA
Strategy Consultant, United States
												
				                Re: Who Decides 'Superior', on what Basis?

													Thank you for a first-rate Q&A. I agree with you 100%.
I hope I don't offend anyone when I point ou... Sign up
				              
										              1

						            	Gautam Mahajan
CEO, India
												
				                Why Customer Value Added Increases Competitive Advantagew

													Warren, you are right. It is the value you add at time of purchase that determines repurchase. That ... Sign up
				              
										              1

						            	Warren D. Miller, CPA, CFA
Strategy Consultant, United States
												
				                Re: Why Customer Value Added Increases Competitive Advantage

													Thank you, Gautam. Would you mind enlightening me about what 'NPS' stands for, please?
I think it's... Sign up
				              
										              0

						            	Maurice Hogarth
Consultant, United Kingdom
												
				                Re: Who Decides 'Superior'?

													@Warren Miller, CPA, CFA: Thank you Warren.
Picking up on point 2: It is not unknown for customers ... Sign up
				              
										              0

						            	Warren D. Miller, CPA, CFA
Strategy Consultant, United States
												
				                Re: Maurice Hogarth

													@Maurice Hogarth: Thank you. I'll just say this: You're preaching to the converted, as surely you mu... Sign up
				              
										              1

						            	Gautam Mahajan
CEO, India
												
				                Meaning of NPS

													Warren, Net Promoter Score or NPS is the measure of whether you will buy again or not or whether you... Sign up
				              
Leave a comment

		                            More on Competitive Advantage:
		                          
													            	Summary
													            
												              Discussion Topics
												            
		                          	Quotes Competitive Advantage
10 Routes to Competitive Advantage
Case studies in "Cost Leadership"
How Can Logistics Help to Achieve a Competitive Advantage?
Stuck in the Middle?
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
Life Cycle Approach to Competitive Advantage
Focus your Efforts in Building Competitive Advantage
What are the Risks of a Differentiation Strategy?
Competitive Advantage in Tough Times
👀Is Superior Value to Customers a Competitive Advantage?
Knowledge Management is more important than CA
Weaknesses of Porter's Three Basic Types of Competitive Advantage
4 Stages of Hypercompetition
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

		                              Special Interest Group
		                            
Do you know a lot about Competitive Advantage? Become our SIG Leader