Sources of Competitive Advantage

STRATEGY

Table of Contents
SOURCES OF COMPETITIVE ADVANTAGE........................................................................3
INVESTMENT IN RESEARCH AND DEVELOPMENT.........................................................5
RECOMMENDATIONS.................................................................................................................6
PART 2 - STAKEHOLDER REPORT ..........................................................................................6
STAKEHOLDERS ANALYSIS ................................................................................................7
STAKEHOLDERS MANAGEMENT........................................................................................8
REFERENCES................................................................................................................................9

SOURCES OF COMPETITIVE ADVANTAGE
Competitive advantage is a condition where a company produce goods and services at
lower price with equal value. This helps in generating more sales and increase profit margin of
business. There are various factors attributed to competitive advantage are cost structure,quality
of offered product, branding, intellectual property etc. Competitive advantage provides great
value to its stakeholders and firm through certain strengths (Jannesson, Nilsson and Rapp 2016).
Sources
 Distinctive competencies: It refers to strength a business possess which is better than its
competitors. Business products and services differentiate from its competitors at lower
price to gain cost advantage.
 Resources: Resources of the company includes tangible assets such as machines,
buildings, lands and intangible assets includes intellectual property, brand image etc.
 Capabilities: It refers to the resources coordinated with the skills and knowledge in order
to maximize profits and production. Resources need to be fully utilized.
Synergy mobile Inc may use Porter's generic strategies to gain a competitive advantage
(Le Grand, 2018).
Porter's generic strategy
In this strategy, the main focus is on firm's profitability. It describes that how a company
maintain its competitive advantage in its market. Synergy mobile Inc either focus on offering
products to selected market segment or offering products in wider market segments. There are
many segments which may be targeted by the company. Mainly there are 3 generic strategies
such as cost leadership, focus and differentiation strategies. Synergy mobile has also used these
strategies (Scholes, 2015).