1: competitive advantage
2: it’s works
3: competitive advantage vs competitive offer
4: example of competitive advantage
Opening information:
competitive advantage breaks into two words competitive and advantage. competitive means one matter or item is similar to the other matter or items to work on the same paths.
Advantage means when one item or person has a unique special Superior quality when compared to another is called as advantage.
competitive advantage means moat which means having something that other similar products couldn’t have or couldn’t offer.
So this article contains information about what is competitive advantage, how competitive advantage works in the stock market, and what is the difference between competition advantage and competition offer, and finally example of competitive advantage.
1: competitive advantage
One of the technology Company where is started in the 1976s. Which was founded or created by one man, whose name was Mr.Steve Jobs.
After a long work, he would be fired from the own Companies of directors of his company.
This makes Steve unable to continue on his own business.
After a long time of struggle without Steve, the company again requests Steve to join it.
Steve more focus on the Mac laptop and Apple iPhone, while other competitors of the technology also more focus on the mobiles.
Steve’s product of the systems would be more unique and not copied by anyone. Also, Steve didn’t allow the system to be copied by anyone.
Most of the competitors in the mobile phone industry provide cheap products with more features. But Steve gave more unique features and high prices with quality products.
This only makes a few sales at the beginning for Steve, other companies’ sales might skyrocket at the beginning of the cheap offer but they would lack the sales and profits in the long run.
The Steve Company grew slowly and steadily over time, Steve’s products created extraordinary results because of his uniqueness which no other industry would be able to copy.
After 5 years of Steve’s industry success, most of the technology companies got out of the business. Steve’s business stands steady at his niche without any knockdown.
For this reason, Steve had a strong competitive advantage, the Steve products system quality wouldn’t be copied from the entire world.
Now let’s see how the competitive advantage works.
2: it’s works
Any of the competition advantage businesses are also called competitive advantage stocks.
Because the company that had high advantages over the other competition would be able to survive their business for very long decades.
When any business is formed, it doesn’t matter what products or services it offers, if it has some unique things to offer to its customers. then their business always stands out from the crowd.
Say one industry’s advantage is based on the quality, it’s the one thing that makes them differentiated from others. After the 5 years of the company since it’s got started.
The industry didn’t care and was serious about its advantage, it reduced the quality and charged very high prices for its products.
This makes the industry lack sales on the coming future profits of the industry. It doesn’t matter even if the industry charges high prices and provides quality products.
Instead when they only focused on making money by reducing quality, the business started to get damaged too.
So most people misunderstand the worth and value of the competitive advantage of a certain business, let’s know the key difference between competitive advantage and competitive offer now.
3: competitive advantage vs competitive offer
Competitive advantage is created and exists for the entire lifetime of the business. If the business goes down the competitive advantage of the business goes down too.
But the competition offer is not like that. The offers are implemented by any of the industries and are only available for a short amount of time. So it wouldn’t exist for the entire lifetime of the business.
Offers are implemented on the product or service but the advantage exists in the product or service for the entire life of the company.
So the key difference between the competitive advantage and offer is copied. The offer would be copied and competitive advantage is not copied without the permission of the owners.
To make more clear about the competitive advantage, let’s dive into the one real-world example.
4: example of competitive advantage
Every stock Investors know that McDonald’s is a worldwide Company. But that ensures every world wide grown industries wouldn’t be grown without any single competitive advantage on their industries.
If take a look at McDonald’s, McDonald’s has a unique taste advantage, and the taste would not be made by anybody using the same materials that are used for making the products McDonald’s.
They build the brand around the taste of chicken and burgers. which is not easily copied by anyone and could not bring the exact taste whole around the world.
That gives McDonald’s very unique competitive advantage over other food Industries.
Non Market rule: #100110
Competitive advantage is not considered in the market rule, but it’s an analysis concept when purchasing any business shares in the public market to know whether a certain business has a competitive advantage or not.
If your investor and not comfortable or aligns investing with based on market rules please learn about how to regulate your investments under your control with the use of Rule investing.