TURNING COMPETITIVE ADVANTAGE INTO CUSTOMER EQUITY

Competitive Advantage is driven by the oversupply in a market. This makes the customers the force behind the suppliers to innovate, increase quality, and offer new products that are more attractive at a cheaper price. This will also create an imitation within the supplier market and often it leads to even more over supply. In order to keep up with the cycle of competitive rationality, firms need to manage a process of competitive advantage. This is a very cyclical process.

Managing Competitive Advantage as a process; the two sources of competitive advantage superior skills and superior resources are used to achieve one of two positions of advantage, or ways of competing: low cost or differentiation. Those unable to achieve the low-position must make the product worth paying the higher price. In this millennium technological advantage may be the key to survival and success. The other two outcomes of achieving a position of competitive advantage are Customer Satisfaction and Customer...