Developing a Competitive Advantage

Why do customers want to buy your product? Why would they purchase your product instead of your competitor's product? Marketers must maintain and sustain a competitive advantage, and consumers must know what it is and why your product satisfies their needs. Cost advantage (or differentiated advantage) are the two strategies generally followed by firms. Furthermore, the scope and scale of the market – large or small – must be considered. Large firms with a large scale of production can often offer low prices due to the cost advantages from their economies of scale. Small companies with limited scale often must compete by offering a differentiated product. This video covers the importance of competitive advantage. A competitive advantage must be sustainable; therefore, we use the acronym SCA for sustainable competitive advantage.