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Ways a company can gain a competitive advantage through differentiation
Discuss:
- Ways a company can gain a competitive advantage through differentiation
- Discuss the dimensions and the importance of strong brand equity and brand value.
- Explain the product life-cycle and why it is important for marketers to understand and the concept.
Overview
Many businesses choose to restructure over time and will use a variety of strategies to advance and distinguish themselves in the marketplace. If you want to increase profits without high risk or lowering your prices, consider creating a differentiation strategy.
Competitive Advantage:
The competitive advantage refers to the elements that allow the organization to attract more customers or the ways that a company can produce goods or deliver services better than its competitors which allows a company to achieve superior margins and generate value for the company and its shareholders. Companies can gain this advantage by charging low prices for goods and services or by offering high-quality goods or services to the market.
A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market. A product’s life cycle is usually broken down into four stages; introduction, growth, maturity, and decline. Product life cycles are used by management and marketing professionals to help determine advertising schedules, price points and expansion to new product markets, packaging redesigns, and more. These strategic methods of supporting a product are known as product life cycle management. They can also help determine when newer products are ready to push older ones from the market.
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