Importance Of Competitive Advantage In Strategic Management : The secret of success is to be ready for opportunity when it comes. If a company is not “best in world” at a critical activity, it is sacrificing competitive advantage by performing that activity with its existing technique.
Importance Of Competitive Advantage :
It is the ability of a company to move information and ideas from the bottom to the top and back again in continuous dialogue that the Japanese value above all things. As this dialogue is pursued, strategy evolves.
A company should approach all tasks with the idea that they can be accomplished in a superior fashion.
There is no substitute for quality and no greater threat than failing to be cost competitive on a global basis. These are complementary concepts, not mutually exclusive ones.
While many companies may concentrate their efforts on tangible assets or develop strategies that focus purely on external factors such as competitive moves and counter moves, there are some companies who recognize the potential competitive advantage of their brands and use them to create a competitive advantage.
A brand has the potential to become one of the most valuable and sustainable sources of competitive advantage. Brands are intangible assets and as such are difficult to imitate by competitors. Cash flow streams can be assigned to brands so that a net present value of the brand may be calculated.