Competitive advantage - Definition and Examples of Wal-Mart and Apple

Authors Avatar by zzz999999 (student)

Course: MGT401

Name: Shu (Luke) Tang

Professor: Luo Yadong

Topic: Final essay

  1. What is competitive advantage, and what is “core competence? For a company seeking competitive advantages, what are the generic competitive strategy choices it can use? What are the four building blocks through which it can establish its competitive advantages?
  1. Based on power point definition, competitive advantage is when firm implements a strategy that creates superior value for customers and competitors are unable to duplicate it or find too costly to imitate it.
  2. Core competencies are “crown jewels of a company”, the activities the firm performs especially well compared to rivals and through which the firm adds unique value to its goods or services over a long period of time. It can also be called as Strategic Assets, Strategic Capabilities, and Critical Capabilities.
  3. For a company seeking competitive advantages, the elements of Low cost, differentiation, and focus are the generic competitive strategy choices it can use.
  4. Specifically, firm is using four building blocks like Quality, Efficiency, innovation, and customer responsiveness to establish its competitive advantages.
  1. Superior quality includes quality design, reliability, durability, and image. When people think of a product or services, they think in these terms. For example, when people are on the market for a cell phone, many of them would pick an iphone (or Blackberry) over another brand like Motorola. Apple and other brand like Blackberry typically have a reputation of a high quality, clean design, secured systems, and consumers associate these cell phones with a high-quality image.
  2. Superior efficiency refers to the cost to the market via materials, production, logistics, and overhead. Wal-Mart will be a good example to showcase because not only its advanced logistic systems but also the integration of its supply chain. Another interesting fact about Wal-Mart is its slogan “every day low price.” In order to achieve that, Wal-Mart is actually manufacturing product themselves in order to reduce wholesaler and retailer cost for customers. In this way, the customer will get the cheapest price from Wal-Mart.
  3.  Superior customer responsiveness is the importance of anticipating and meeting customer needs. Apple Computers is a great example of customer responsiveness. When you order a product from Apple no matter whether it is on-line or in store, you can always reach their customer center with a friendly well-trained representative. The order process is very easy, taking only a few minutes.  For example, when you go to apple store to buy its products, the system will email your receipt automatically after your purchase.
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Another thing need to highlight is that apple’s delivery is quick and accurate and there is a good amount of call centers that customers can call to get assistance after the sale or, they can use the Internet to find a solution.

  1. Furthermore, I want to talk about the app platform that apple created.  Apple’s product is not only about a simple functional mp3 or cell phone. They integrate programmers, suppliers, customers, and merchants into one platform so that they are able to communicate each other. Their sales representatives and marketing representatives visit customers on a ...

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