MKTM003: Strategic Competitive Advantage in Marketing Report

This report provides a comprehensive analysis of competitive advantage within the context of strategic marketing. It begins with an executive summary and introduction, outlining the core concepts and objectives of the research. The report delves into the significance of competitive advantage, emphasizing its role in allowing organizations to outperform rivals and achieve their objectives. The assignment focuses on the resource-based view (RBV) of the firm, critically evaluating its perspective on creating a sustainable competitive advantage (SCA). The report examines six journal articles that explore the effectiveness of competitive advantage in marketing, highlighting the importance of resources, including human capital, technology, and geographic location. It discusses the key characteristics of resources that contribute to SCA, such as value creation, rarity, and imitability. The report explores the role of marketing resources, performance, and competitive advantage, and also examines the connection between product/service quality, competitive strategy, and the role of marketing. The report also highlights the importance of marketing resources in achieving a competitive advantage, including both tangible and intangible assets. The report references various theoretical perspectives, including the resource advantage theory (RAT), to demonstrate how organizations can leverage their internal assets for success. The report concludes with a discussion of how organizations can develop and maintain a SCA.

Strategic Competitive
Advantage

Executive summary
Competitive advantage is a term which shows the capability of an organization through
an enterprise can overtake their competitors and get succeeded in attaining set objectives by
grabbing existing market opportunities. Therefore, this research project is all about focussing on
various articles which shows the effectiveness of competitive advantage in strategic marketing
with the help of suitable example. Along with this, focussed on various theoretical perspectives
such as; RBT (Resource based view). Moreover, whole project helps in understanding the
various concepts related with competitive advantage in order to understand each and every
aspects of enhancing firm performance.

Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Competitive advantage is an attribute which permits an association to outperform their
rivalry which includes various things such as; access to natural resources like highly talented
employees, geographic locations, allowed using advanced technology and many more. In fact,
competitive advantage plays a very crucial in strategic marketing because this technique helps an
organization in maintaining their monopoly at marketplace (Stonehouse, 2004). However,
number of authors are identified which were expressed their viewpoints or thought process on
effectiveness of competitive advantage in strategic marketing.
Therefore, this assignment is going to highlight the effectiveness of competitive
advantage in marketing by throwing lights on resource based viewpoints. Thus, main objective
of this report is to outline 6 major journal articles on competitive advantage in marketing for
understanding the role of this strategy in success of business. Moreover, throw some lights on
marketing resources and significance of competitive advantage in business.
TASK
Competitive advantage is considered as leverage for business over its rivalries that can be
acquired by offering best and greater value. Along with this, goods or services with affordable
prices but of higher quality seek the attention of maximum consumers. Therefore, this thing
become one of the major reason behind brand loyalty and why end users always prefer one
specific goods over any other item. In fact, most of the business tried to gain competitive
advantage at marketplace over their competitors by coming up with creative ideas and unique
products for attracting the minds of domestic as well as foreign clients (Craig and Douglas,
1996). Thus, several numbers of authors have come up with their viewpoints that competitive
advantage is seen as major technique in strategic marketing and plays a very significant role in
promotional activities of an enterprise with the use of various useful resources. Hence, 6 major
journals articles on “resource contribution on the role of competitive advantage in strategic
marketing” for understanding its effectiveness.
1st Journal Article Vol. 2, Issue 12, December 2013 ISSN 2319-4847 :
“COMPETITIVE ADVANTAGE: ITS IMPORTANCE AND IMPACT ON DESIGN OF
STRATEGY”:- Dr. Aswini Kumar Dash
Key Words: - Competitive advantage, Business Strategy, Sustainability.
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An organization can defeat their competitors only if they get succeeded in establishing a
difference which can preserve them from others. It means, main motive of this scheme for
enterprise is to accomplish various business activities distinctly as compared to other rivals do.
Basically, strategic competition can be seen as an appropriate procedure of perceiving new
positions at marketplace or to draw new end users into market. However, strategic positions is
totally based on the needs of consumers, accessibility or various types of organizational products
or services. Although, success probability of a business is rely upon whether the strength of an
association is matching the key success need for operating in target market but also beat those of
its rivalries. In fact, this author states that strategy of an organization needs to designed in that
manner that there must be proper fir between extrinsic opportunities and intrinsic strengths while
performing around external threats as well as internal drawback. Hence, it has been understood
that competitive advantage exists only if an association is having much better or distinct product
for its targeted consumers as compared to other competitors (Dr. Aswini Kumar Dash, 2013) .
“For example; Apple is a most successful brand in telecom industry by having its top most
position in this industry. As a result, this organization is enjoying strategy of competitive
advantage by introducing totally unique or better product as compared to other rivalries. In fact,
public are preferring also distinct new launch of Apple such as; iPhone 5, 6, 7 and many more to
come”.
Furthermore, one of the major key objectives of any business strategy for attaining
competitive advantage is sustainable resource. It means that a scheme is resultant into better
performance of an enterprise in overall industry which is sustainable over a time period.
However, competitive advantage is explained with the help of various interconnected concepts
such as; (a) Superior performance- analyse in terms of maximum profit returns against sales or
investment of higher revenue, higher market share and many more. (b) strategy- is a planning of
action through an association set an objective of attaining higher competitive advantage. (c) Core
competences- different awareness, skills and business activities for making the company totally
different as well as much better that its rivalry by acting as the basis of generic strategy. (d)
Innovation- platform of changing or modifying in international business market which means
that an enterprise needs to come up with continuously new skills or core competences in order to
innovate faster than opponents. Additionally, there are various other concepts are also
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determined such as; configuration, coordination, responsiveness and many more which were
fully associated with concept of competitive advantage (Prahalad and Hamel, 1990).
Hence, it has been analysed that suitability in competitive advantage is assessed
throughout the time which can enhance the performance of an organization and maintained it for
coming time period. According to Resource Based View framework, resources heterogeneity
refers to cluster of resources and capabilities which cover overall production of an organization.
However, each and every asset is having varying levels of productivity efficiency that enables an
organization to produce more economic products or better for satisfying consumer desires in a
define time period. On the other hand, imperfect mobility refers to those resources which are not
normally traded as they are more valuable in an organization as compared to other. It includes
some of ill-defined resources or non-fungible. However, Ill-defined are those assets which were
not having any well-defined property rights such as; customer loyalty or trust of supplier.
Whereas, Non-Fungible resources are those assets that are derived within specific context and
their value is not going too transferred to other alternative relationships or enterprise (Davcik &
Sharma, 2016). Mainly, these resources are especially tangible like; capital, equipment’s or
intangible are like capabilities of human resource, any particular technologies etc.
Throughout this article, it has been analysed that competitive advantage promotes
sustainability of an organization and helps in strategic marketing with the help of various
resources. It means, this author has clearly explained the effectiveness of several resources at
workplace (Cavusgil, 1994).
“2nd Journal Article (British Journal of Management) Vol. 7, 231-245 (1996):-
Competitive Advantage, Quality Strategy and the Role of Marketing:- Neil A Morgan and
Nigel F. Piercy”
Key words: - Product and services Quality, Competitive strategy, role of marketing.
“Enhancement of goods and quality of services is going to analyse in this article which is
consider as an effective competitive strategy of an organization in order to attain sustainable
competitive advantage. It means, this section will explore the interface between promotional
management team and quality in seller enterprise with the help of contingency model of
qualitative scheme.”
In 1980s, maximization concentration into strategic nature of goods or service quality is
utmost activity for businesses. In fact, various studies clearly states that using of PIMS (Profit
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impact of market strategy) recommended that quality of products and services have positively
linked with performance of an organization. It means that enhancement in quality of goods is
seen as most indispensable aspect for attaining long term competitive advantage. Therefore,
increase in significance of qualitative products enforce various associations to modified their
management approaches of “total quality management” (TQM) paradigm. Basically, this tool
emphasized inter-functional engagement in process of quality enhancement, growth of consumer
based quality that and use of procedure of control tool in order ensure performance. Hence, main
objective of this author is to develop a model full of concept for implementing role of marketing
in attaining positional advantages with the use of quality based competitive schemes (Neil A
Morgan and Nigel F. Piercy, 2001) .
In this modern world, contemporary strategic thinking is dominated by central notion
which clarifies that superior performance of an organization is a result of attaining sustainable
competitive advantage. Therefore, successful determination, growth and deployment of
appropriate base of SCA is consider as a central principle of business as well as marketing
scheme. Additionally, improvement in quality and proper management of product quality is seen
as most significant basis for acquiring SCA (Sustainable Competitive Advantage). Thus, most
suitable models for enhancing quality process states that improvement of goods quality is
resultant into SCA which is possible through minimizing unit costs, maximization of market
share and decrease the cost sensitivity (Andersen, 1989).
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Meanwhile, in literatures of strategy quality have mainly linked with competitive
schemes designed for attaining differentiated positional advantages. Hence, strategy analysts saw
quality as one of the most suitable base of an enterprise through which company get succeeded in
gaining positional advantage. From the above diagram, it has been understood that approach of
quality is totally based on production improvement with minimum cost by managing consumer
price and value. Along with this, company have to design distinct product which is totally
different from other in quality terms and satisfied the perceptions of end users (Barney, 2014) .
“3rd Journal Article: Marketing resources, performance, and competitive advantage:
Nebojsa S. Davcik.”
Key Words: - Marketing resources, competitive advantage, resource advantage theory (RAT),
Resource Based view (RBV), Resource based theory.
Marketing resources are very much indispensable and useful drivers of organizational
strategy as it helps business entity in gaining competitive advantage over competition and aids in
enhancing performance. However, in this area there are various theoretical perspectives which
include market-based assets and its influence on stakeholder value, influence of brand equity and
innovation on long term promotional effectiveness, resource based theory, resource advantage
theory of competition among others (Bruni & Verona, 2009). Researchers focussing RBT usually
recognize the major role of promotional resources such as brands and its relationships for
seeking competitive advantage. Basically contemporary application of RBT to marketing would
requisite determination of particular promotional team. As compared to RBT, RAT posits that an
organization can easily attain sustainable competitive advantage only if managers of an
enterprise and manipulates its intrinsic assets in that way so that final consumption of product in
dynamic sector competition offers top most financial performance of an enterprise. Mainly,
theory uses resources based view of a firm in order to concentrate on promotional assets in terms
of ability for gaining competitive advantage. RAT seen resources as tangible and intangible
properties of an organization which can help in producing a market offering that is having a
greater value for a certain segment of market (Nebojsa S. Davcik, 2016) .
In simple words, resources of marketing highlights broad value propositions which
automatically influence the shareholders in every firm and mainly deploy these assets for
acquiring competitive advantage at marketplace. It may include various tangible or intangible
things such as; physical, human processes, intellectual or relational properties. In fact, these
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resources vary from direct or indirect contribution while attaining competitive benefits. For
instance; “market based” assets are affecting directly on competitive benefits as well as instantly
deployable. On the other hand, resources of “marketing support” act as supportive activities and
influencing indirectly to competitive advantage. In this research, Kurt and Hulland (2013) have
studied the issues of initial public offerings and influence of marketing scheme on organizational
performance as well as competitive gaining. On contrary to this, Krush et.al., (2014) identifies
the connectivity between marketing and resources of selling and combo effect on firm
performance. In fact, this study identifies that capability of sales and usage of marketing
dashboards plays a very eminent role in improving business performance but also having
interactive connection with sensemaking. Basically, sensemaking is having ability to influence
both price efficiency and organizational growth. Furthermore, Haapnanen, Juntunen and
Junutunen adopted RBV (Resource based view) for arguing the heterogeneity in resources as
well as capability endowments offers some of the indispensable benefits to the enterprise in order
to compete with foreign markets.
“4th Journal Article Vol. 36, 2016, 456-466: The Mediating Role of Competitive
Strategies in the Effect of Firm Competencies and Export Performance: Mohsen
Mohsenzadeh, Sahar Ahmadian”.
Key Words: - Production capability, Marketing capability, Competitive capability, Competitive
strategy, export performance.
Main motive of this article is to focus on mediating role of competitive strategies in
influencing the aspects of firm competencies such as; marketing and promotional capability,
export performance and production capability. Mainly, oil exports have been taken as a major
example in this journal for understanding the subject in much better manner.
Recently, enhancement of non-oil exports is consider as most significant strategy for
developing the nation and it also aids in enhancing economic growth plans. After world business
procedure started connected with reduction of raw materials then non-oil export have become
only reliable source for national growth of economy as well as for revenue maximization. As a
result, export of non-oil business becomes one of the most indispensable aspects for nation
success. Therefore, in this modern world, export has become only source of generating income
for large number of country. At the same time, it also become most complex procedure because
it requisite long term as well as appropriate policies for having continuous control of foreign
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market. By analysing this entire situation, it has been understood that firm competencies get
increases too much and these associations are not having any systematic framework for better
export performance (Mohsen Mohsenzadeh and SaharAhmadian, 2016). Therefore, this can be
possible by converting organizational resources into valuable creation for export marketing.
Basically, approach of firm competencies is totally related with the theory of resource based
view in which enterprises are consider as a particular set of resources and competencies. It
means, particular performance of export business clarifies the position of adding capabilities in
discovering, forming and delivering value to the end users at export marketplace.
This above diagram states that firm competencies cover all the various competencies
which are followed by export market for attaining competitive advantage at marketplace with the
help of several elements. Therefore, this entire article is revolving around the strategy of export
for business in order to attain competitive benefits by getting connected with numerous factors.
“5th Journal Article Vol. 36, 2016, 22-28:- The Effect of Marketing Capabilities on
Competitive Advantage and Performance with Moderating Role of Risk Management in
Importation Companies:- Mohsen Ejrami, NaderSalehi, Sahar Ahmadian”.
Key words- Marketing capabilities, Competitive advantage, Performance, Risk management
Importation market have been converted into impressive market for merchants with ever
developing maximization in numerous importation enterprise and rising volume of import in
current time period. However, major modification which is needed for the structure in imported
enterprises is because of several imported commodities and its influence on their performance.
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Mainly, improvement in variables of promotional potentials is to enhance performance and
competitive advantage of imported enterprises with influence of moderating role of risk
management.
There are few limited nations are identified which are having potential of manufacturing
required products and consuming services of various kinds. However, quality influence of
product neutralized the cost of that commodity as those goods are even imported if there quality
affect is higher than price. Mainly, an import of a nation is really very much advantageous for
overall economy and plays a very crucial role in identification of economic enhancement
strategy in recent structure of international economy. Therefore, using of suitable strategy for
importation association is a major subject to consider (Day, 1994).
Marketing potentials have coined as an appropriate procedure of application of
Knowledge management, skills of an enterprise and resources for value added in products and
services, for fulfilling the competitive demand and response of relevant requirement at
marketplace. Imported associations require following some capabilities and potentially in order
to develop and employing the competitive benefits in order to use in designing inimitable,
valuable, rare and irreplaceable assets (Mohsen Ejrami, Nader Salehi and SaharAhmadian,
2016). Although, sustainable competitive advantage can be described under few situation in
which one organization can overtake their competitors and get succeeded in maintaining its own
efficiency higher than rivalries enterprises. Nilssen (1985) clarifies that there are various
successful associations which have identified few modification that includes; hierarchy, practical
routines of organization, covering lesser regulation, lesser regulatory enterprise coordination and
proportional to upcoming order in decisional process.
“6th Journal Article (Journal Management Inquiry) Vol. 16 No. 3 September 2007 256-
273:- Competitive Advantage Revisited: Michael Porter on Strategy and Competitiveness:-
GEORGE STONEHOUSE and BRIAN SNOWDON”.
Key words:- Strategy, Strategic management, competition, competitiveness, strategizing.
This article is based on current interview with Michael Porter and assessing his overall
contribution in developing discipline in context of advancing which have taken place. Author
summarized that Porter have made his lasting contributions to strategy, maximizing both its
academic rigor and its accessibility to managers.
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Professor Michael Porter is seen as founding fathers of strategic management as a
recognized academic discipline. He has contributed in investigating “competitiveness” at level of
an organization, industry and nation over past 30 years. The five forces framework of Porter
permits an organization for assessing both attractiveness of its industry and its competitive
position within the sector. As per the viewpoint of Porter, potentiality of any enterprise to be
profitable is negative linked with maximization of competition, lowering barriers of entry,
numerous of close substitutes and increment in bargaining power of suppliers or end users. In
fact, cost leadership strategy is required by an enterprise for becoming lowest cost manufacture
of specific goods and services in order to attain large number profit level. Along with this,
differentiation strategy is used by company for making customer believe that product or services
offered by them are of superior quality and totally distinct from other for demanding premium
cost (George Stonehouse, 2007).
CONCLUSION
From the above report and various articles, it has been summarized that number of
authors has come up with distinct viewpoints on competitive advantage in order to clarify
distinct things. Throughout the project, it has been analysed that competitive advantage is an
appropriate strategy which is used firms for improving their business performance in order to
gain more or more benefits. In fact, this strategy have covered number of concepts in it due to
which various associations are following and using this scheme in marketing tools in order to
attain their set target in a defined time frame.
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