Competitive Advantages
Understanding Competitive Advantage
Competitive Advantage in nutshell is the outcome of Strategic Planning a company performs in an attempt to gain industry leadership through enhanced products and services not present in their competitors. Companies are striving continuously to be leaders in their industry and it is important that they find differentiation strategies that sets them apart. Consider the below companies. With a little research and your general knowledge, identify three Competitive Advantages each that they possess over their direct and indirect competitors. To best identify these advantages, you would need to know who their competitors are (companies selling the same or substitute products). Note: I intentionally grouped companies to make this exercise easier and more transparent to you.
See the examples of what I am looking for in red for #1 and #2. Give one more for each.
- Delta Airlines
- Travel extended to more U.S. and International Cities than lower cost airlines.
- Atlanta, GA hub is the largest in the U.S. Most flights in and out than any other airline or airport.
- Southwest Airlines
- Free checked bags
- Lower cost tickets than major airlines
- Walmart
- Home Depot
- Keurig
- Bath Fitters
- Verizon Wireless
- Dell Computer
- Any Community College
- Yale University
- Nike
- Mercedes Benz
- Bon Secours Health Care System
- Samsung
- OneLife Fitness Center
- Planet Fitness
- Rolex
- Fidelity Bank
- IHOP Restaurant
- Tyson’s Chicken
Competitive Advantage Strategies
Name
Institution
Course Code and Title
Instructor
Date
Competitive Advantage Strategies
1. Delta Airlines
a. Extended travel to more Cities compared to lower-cost airlines.
b. The largest in the U.S. is Atlanta, GA hub. Most of the flights are in and out compared to any other airline or airport (Murphy, 2021).
c. High safety standards that elevate customers' confidence.
2. Southwest Airlines
a. Free bag checking
b. Tickets are more low cost than major airlines (Murphy, 2021).
c. A culture that promotes employee engagement and empowerment to promote its customer services.
3. Walmart
a. Cost leadership through investing in technology and maximum utilization of its resources such as human resources.
b. Efficient supply chain by strategically placing its warehouses and distribution centers (Pant, 2022).
c. Providing its products at low prices as compared to its competitors such as Target.
4. Home Depot
a. Economies of scale through bulk purchasing of its products thus enabling it to sell at a lower price.
b. Ability to provide a diverse selection to its customers to select from giving it a large market share (Hughes, 2023).
c. Product differentiation through engaging brands that develop exclusive products thus giving its customers quality and unique offers.