Competitive Advantage

Competitive Advantage is a distinct edge of an organization, which puts it apart from other organizations. It come form core competencies of an organization, it might be in the form of organizational resources and assets, organizational capabilities and quality management and continuous improvement. Examples of  all the core competencies are given below:  

Organizational Resources and Assets 

State-of-the-art information system gives edge to the Wal-mart to control and monitor supplier relations and inventories more competently than its competitors; it ultimately gives Wal-mart a price advantage. Cola-Cola and Nike gets competitive advantage through the well-known global trade marks by achieving the premium prices. It means Wal-mart, Cola-Cola and Nike have something that their competitors do not have.  

Organizational Capabilities     

Direct-selling channel allows Dell to be highly responsive to customers than its competitors, which gives Dell the competitive advantage. Southwest Airline has skills by giving passengers what they desire convenient, quick and fun service, which gives Southwest Airline competitive advantage. It means Dell and Southwest Airline is doing something better that their competitors cannot do or does.    

Quality and Continuous Improvement

Proper quality implementation can provide an organization Sustainable Competitive Advantage (SCA), what puts an organization apart. Continuous improvement in the reliability and quality of service and product can provide competitive advantage that can not be taken away. Daewoo Corporation, Motorola Corporation and Ericsson are best known for high quality, which provides them competitive advantage.