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DF Company, a relatively new company, is in the business of designing and building farm equipment and machinery. Whilst it has been winning in its first few years of operation, sales are now in decline as competition in the industry has intensified and there is greater rivalry among competitor organisations.
A review undertaken by consultants has recommended that, in order to gain sustained competitive advantage, the company needs to establish the basis on which it can compete more effectively against its rivals in the future.
Describe the concept of competitive advantage and contain reference to the different bases DF Company could use to achieve competitive benefit.
Competitive benefit is anything that can give an organisation an edge over its rivals and competitors. An important aspect of competitive advantage is that it requirements to be sustained over time, rather than being short-lived. It is significant for DF Company to understand on what basis it will seek to achieve competitive benefits since, to be sustainable, it must recognize those activities that competitors cannot easily copy and imitate.
The basis on which to compete essentially comes down to explaining why customers would choose to do business with DF Company rather than its rivals, or vice versa. The reasons can be categorised in broad.
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