MGMT6010: Competitive Advantage, Product Offering, Positioning

This learning portfolio assignment explores the concept of competitive advantage within a business context, focusing on product offerings and business positioning. The student's original post examines how businesses can gain a competitive edge by differentiating themselves from rivals, emphasizing the importance of brand recognition and unique competencies. The responses delve into the basis of comparative advantage, highlighting how businesses can achieve profitability through efficient production and cost leadership, with examples like Apple Inc. The second response discusses differentiation leadership, where firms aim for competitive advantage by focusing on multiple criteria used by buyers and charging premium prices. Nike and Mercedes are provided as examples of this approach. The assignment highlights the dynamic nature of the market and the need for businesses to adapt and evolve their strategies to maintain a competitive edge. References are provided to support the arguments made within the assignment.

Learning Portfolio
NAME OF STUDENT:
COURSE NAME:

Contents
Original Post: Issue of competitive advantage: product offering or positioning of business.................2
Response 1: Basis of comparative advantage........................................................................................3
Response 2: Dealing with competition with differentiation leadership.................................................4
References.............................................................................................................................................4

Original Post: Issue of competitive advantage: product
offering or positioning of business
As existing business scenario is undergoing dynamic changes, so developing and maintaining
new competitive challenges and modifying the dynamics is need of the hour. So it is vital for
businesses to demonstrate their competencies and differentiate themselves from others to
drive intention for growth and profitability. Rather than competing on prices alone, the
businesses need to develop stronger differentiation strategy to succeed and stand out from
otherwise similar rivals in market. Typically this includes emphasising relevant difference
between own business and competitors and such differentiation should be of value for
potential customers. Such robust differentiation of product offering will offer competitive
edge from others (Levinthal, 2016). Determining strong differentiation of product offerings
begins with close and unbiased examination of what it is that really makes a business unique
such as characteristics, features that offers value to customers and appeal them to an
enterprise. Such strong differentiating product offering and positioning approaches sets a
business apart from others and proves it in a way that explains relevance to targeted
customers. Unfortunately the market does not remains still and rivals look at a firm’s success
and tries to imitate them, so with time what was once a unique attribute may get neutralised
and can lead to loosing of competitive edge. Thus to establish a sustained competitive edge a
differentiation approach around product offering tactics need to concentrate over brand
recognition and identity and should focus on ideal characteristics. Essentially this means
determining a firm’s specific competence such as identifying what is that ideal attribute that a
firm does exceptionally well. Whatever is the differentiating competence, it is vitally relevant
to make a firm extraordinarily visible to targeted customers, helping in unique positioning of
business. To stand apart in competition, a firm needs to establish and execute a differentiation
of their product offering, firstly by contemplating their own expertise and other uniqueness to
create a wider differentiation that can be enduring and significant for customers (Rajkumar
and Abraham, 2018). However this needs to be balanced and more specialised which helps
to make a firm defend against rivals. Next a firm should research to align their product
offerings with needs and preferences of customers which helps to inform selection of
concerns and makes competencies more visible. High growth enterprises likely carry out
research than their no-growth peers to succeed in market. Next firm’s should establish
possible differentiators to deliver extraordinary value to a segment of market and should

focus on one strong characteristics to inform positioning of brand and business. Developing
differentiators and focusing helps to position a business strongly by detailing what the firm
does, who it does for and why a prospect should choose them. This differentiation approach
is DNA of positioning the business amongst prospective customers and building solid
impression. Stories can be built around the brand and targeted to segments to increase
visibility through publications, webinars, speaking arrangements. Hence being different in a
better way and separating a business from others in a way that is both significant and relevant
helps to create a visible promotion which is the best way to position a business in market.
Response 1: Basis of comparative advantage
In contemporary business environment the competitive pressures have intensified ever before
as firms are spending much more on promotional activities and marketing which has forced
firms to come up with approaches that can support them outsell from their rivals. The main
argument nowadays is what attributes or factors can lead to overcoming issues of
competition. In consideration to this, what I interpreted from outcome of this lesson is that
businesses can attain competitive edge through comparative analysis which represents the
firm’s capability to build a product or service more efficaciously compared with others which
can be in form of superior quality of product produced with low cost of manufacturing
(Kaleka and Morgan, 2017). This point of comparative advantage resonated with me the most
as I believe this means that a business can achieve greater profitability through selling of their
product/services at a lower yet more competitive pricing without compromising on quality.
Unless the best approach is insured this technique can be endured by firms to sustain
comparative advantage where companies can attain economies of scale after an expansion
which can permit them to lessen their prices as they procure raw materials at a reduced price.
A comparative advantage primarily favours bigger firms who have capability to be flexible in
their operations. Example having reviewed the case of comparative advantage from class
presentation of members I have found that firms typically attempt to cut cost of production to
lower costs or otherwise prefer to relocate their production bases to other nations with lower
wages to capitalise on cheap workforce (French, 2017). Apple Inc is one great example who
have utilised comparative advantage of utilising cheap labour in China to reduce production
expenses.

Response 2: Dealing with competition with
differentiation leadership
As competition gets intense with dynamic changes in market, so losing focus on leadership
can become major concern, so with differentiation leadership, the firms aims to capture
bigger marketplaces and targets to attain competitive edge throughout the entire industry.
This differentiation leadership interested me as this approach includes selecting more than
one criteria utilised by buyers in the market and then positioning the business ideally to fulfil
those criterion. In consideration to this what I understood from the lesson is that
differentiation leadership approach can be used to sustain issue of competitive edge as it is
typically related with charging premium prices for a product offering which commonly
reflects higher production expenses and extra value added characteristics offered for
customers (Gareche, Hosseini and Taheri, 2019). Differentiation leadership charges premium
prices to cover extra production expenses and is about providing customers with clear reasons
to prefer the offering over others that are less differentiated products. Having reviewed this
case I have found that there are numerous ways by which differentiated leadership can be
attained and needs substantial and sustained marketing investments. Certain methods
involves higher product quality such as durability, benefits, reliability, branding such as
strong customer reputation, brand loyalty, industry wide distribution throughout primary
channels and regular promotional assistance dominated by sponsorship, advertisement etc.
Nike and Mercedes are great examples of differentiation leadership as these brands have
attained relevant economies of scale but they have not relied on cost leadership approach to
build competitive edge (Kim, Park and Kim, 2017). Their business and brands are
positioned on persuading consumers to turn them loyal and willing to pay premium prices.
References
French, S. (2017). Revealed comparative advantage: What is it good for?. Journal of
International Economics, 106, 83-103. Available on:
https://doi.org/10.1016/j.jinteco.2017.02.002
Gareche, M., Hosseini, S. M., and Taheri, M. (2019). A comprehensive literature review in
competitive advantages of businesses. International Journal of Advanced Studies in

Humanities and Social Science, 8(3, pp. 223-309.), 223-240. Available on:
http://www.ijashss.com/article_84369.html
Kaleka, A., and Morgan, N. A. (2017). Which competitive advantage (s)? Competitive
advantage–Market performance relationships in international markets. Journal of
International Marketing, 25(4), 25-49. Available on: doi/abs/10.1509/jim.16.0058
Kim, Y., Park, J. S., and Kim, Y. S. (2017). Moderate Effect of Cost Leadership and
Differentiation Strategies on Relationship between Service Innovation and Service
Performance. Journal of Service Research and Studies, 7(2), 43-51. Available on:
http://www.koreascience.or.kr/article/JAKO201732060955654
Levinthal, D. A. (2016). Special Issue on Competitive Positioning. Strategy Science, 1(3), iii-
iv. Available on: doi/full/10.1287/stsc.2016.0017
Rajkumar, K. P., and Abraham, M. (2018). Strategic positioning and sustainable competitive
advantage for growth of industry. International Journal of Management, 160. Available on:
https://s3.amazonaws.com/academia.edu.documents/58786745/