CLASS Nº13

TOPIC: Strategies to consider in the development of competitive advantages

OBJECTIVE: Analysis of the evolution of competitive advantages.

COMPETITIVE ADVANTAGES

The competitive strategy is what a company is doing to try to disarm rival companies and gain a competitive advantage. A company's strategy can be basically offensive or defensive, changing from one position to another according to market conditions. In the world companies have tried to follow all conceivable approaches to beat their rivals and gain a market advantage.

The three generic types of competitive strategy are:

- Strive to be the leading producer of costs in the industry (the effort to be a low-cost producer)

- Seek the differentiation of the product that is offered with respect to the rivals (strategy of Differentiation)

- Focus on a more limited portion of the market rather than a full market (approaches and specialization strategies).