BUS 2002: Gaining Competitive Advantage Through Market Strategies

This essay examines the effectiveness of market-based strategies in achieving competitive advantage for businesses. It defines competitive advantage as a superior market position that mitigates competition and leverages opportunities. The essay highlights that modern businesses prioritize competitive advantage and use strategies like market-based approaches to meet customer needs and enhance profitability. Market-based strategies align a firm's reputation, ambitions, opportunities, and capacities with market demands, influencing strategic planning, goals, and product development. The analysis emphasizes factors like customer demand, pricing, marketing, and customer base as critical components of successful market-based strategies, citing examples like McDonald’s, Tesco, and Woolworths Group. Ultimately, the essay concludes that a well-executed market-based strategy is the optimal method for firms to secure a competitive edge in today's dynamic business environment.

Running head: COMPETITIVE ADVANTAGE AND MARKET-BASED STRATEGY
Market-based Strategies
The best way to gain competitive advantage is for businesses to use a
market-based strategy
Name of the Student:
Name of the University:
Author’s Note:

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COMPETITIVE ADVANTAGE AND MARKET-BASED STRATEGY
As opined by Clemons (2019), the ever-increasing amount of business competition
that the different business firms are presently facing within the business world had shifted
their focus from the aspect of profitability to competitive advantage. Thompson, Strickland
and Gamble (2015) are of the viewpoint that contemporary business firms in order to attain
competitive advantage within the business markets of their operation are taking the help of
different kinds of strategies and one of the most important ones in this is the market-based
strategy. The different market-based strategies not only enable the firms to take into account
the key needs or the requirements of the customers but at the same time offer them the
opportunity to earn a higher amount of profitability and thereby competitive advantage within
the business market of their operation. The aim of this essay is to analyse the manner in
which the different market-based strategies are the best possible options through the business
firms can attain competitive advantage within the business markets.
Tayeh, Al-Jarrah and Tarhini (2015) have articulated the viewpoint that the notion of
competitive advantage can be defined as the condition in which the business firms hold a
superior or favourable business position within the business market of their operation. On the
other hand, Cacciolatti and Lee (2016) have noted that the competitive advantage is the
condition or the situation in which the business firms have been able to significantly mitigate
the adverse effects of the business competition posed by their rivals or any other threats
presented by the market and are at the same time able to take full advantage of the business
opportunities presented by the same. Needless to say, competitive advantage had become the
catch-phrase of the modern business world and thus the different business firms are
increasing attain the same. However, it had been seen that for the attainment of this end the
business firms not only need to offer kind of commodities or services which are better in
quality but also lower in price in comparison to the other ones which are available in the
market and also take the help of different kinds of effective business strategies (Kaleka and
Morgan 2017). In this regard, the different market-based strategies are important ones which
enable the business firms to attain competitive advantage within the business markets.
Anning-Dorson, Hinson and Amidu (2018) are of the viewpoint that the primary
purpose of the different market-based strategies is to capture as well as align reputation,
ambitions, opportunities and capacities which are being presented to the business firms by the
business market of their operation. On the other hand, Salunke, Weerawardena and McColl-
Kennedy (2019) have argued that these market-based strategies are applicable to every
section of the business operations of the firms and also acts as a reference point for the all the

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business activities or the measures which are being used by the concerned firms. As a matter
of fact, it is seen that the different market-based strategies encompass the diverse aspects of
the business firms like their strategic planning process, long-term goals, short-term goals,
business objectives, the products or services offered by them and others. Furthermore, it is
seen that the different market-based strategies are being used by the business firms with a
pragmatic approach and are generally easily manageable (Clemons 2019). Thus, it is on the
score of these factors that the different market-based strategies have gained a significant
amount of prominence within the modern business world.
As stated by Thompson, Strickland and Gamble (2015), there are various factors
which the modern business firms need to take into account for the effective usage of different
market-based strategies so as to gain competitive advantage within the business market of
their operation. One of the most important factors in this regard is to take into account the
demand of the products or services that they are offering and also the expectation of the
customers for the same (Kaleka and Morgan 2017). This is important because of the fact that
in the contemporary times the options or the choices that are available to the customers for
the same services or products has increased in an exponential manner and thus if the demands
or the expectations are not being incorporated by the firms then it is likely that the customers
will not opt for the same. This in turn reduces the loyalty or the satisfaction level of the
customers and the resultant effect of this is that they often turn towards the rivals of the firms
(Anning-Dorson, Hinson and Amidu 2018). In this context, mention needs to be made of the
firm McDonald’s which in the recent times had significantly modified its product portfolio on
the basis of the demands or the needs of the customers (Salunke, Weerawardena and McColl-
Kennedy 2019).
Price is another factor that the firms need to take into account for the process of their
business activities and should form an integral element of their market-based strategies. This
is important because of the fact that in the present along with the attribute of quality, the
customers also take into effective consideration the element of price for the services or
products that they buy (Tayeh, Al-Jarrah and Tarhini 2015). In this context, mention needs to
be made of the firm Tesco which taking the help of the cost leadership had been able to earn
the loyalty of the customers and thereby competitive advantage within the UK retail sector
(Clemons 2019). Thus, if the firms fail to take into account the pricing requirements of the
customers then this is also likely to adversely affect their position in the market. Other
important factors that the firms need to take into are the marketing or the promotional

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COMPETITIVE ADVANTAGE AND MARKET-BASED STRATEGY
strategies that they are using, the customer base that they are focusing on and others
(Cacciolatti and Lee 2016).
Kaleka and Morgan (2017) are of the viewpoint that the effective usage of the
different market-based strategies offers long-ranging benefits to the firms and also the
customers. For example, by designing the services or products as per the needs of the
customers and also fixing the prices of these services or products on the basis of the same, the
firms have the opportunity to earn the loyalty as well as the satisfaction of the customers.
This in turn is likely to help them to enhance the sale of these products or services and
thereby earn a higher amount of profitability as well as competitive advantage within the
business market. In this regard, it needs to be said that the success as well as competitive
advantage earned by Woolworths Group in Australia can be attributed to the effective usage
of the market-based strategies (Clemons 2019). On the basis of these facts it can be said that
the effective usage of market-based strategies is the best option that the business firms can
use for gaining competitive advantage.
To conclude, the fierce competition that the modern firms face in the business markets
had made it imperative for them to take the help of different kinds of business strategies. One
of the most important business strategies in this regard is the market-based strategy. The
effective usage of this strategy not only enables the business firms to earn a higher amount of
profitability but competitive advantage as well and is often considered to be one of the best
options for gaining competitive advantage. These aspects of market-based strategies and
competitive advantage become apparent from the above analysis.

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References
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