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A competitive disadvantage is a condition or circumstance that causes you to lag the competition in a particular area. The following are illustrative examples.
TechnologyAn expensive, slow, error prone or unusable technology platform.ScaleIn many cases, a small firm is at a disadvantage to a larger firm simply because they lack the resources to compete in areas such as product development and advertising.ScopeAn online retailer that sells only shoes may be at a disadvantage to a retailer that sells everything because people tend to want to shop at one place.
LocationThe coffee shop across the street from a busy train station may outperform the one three blocks from the station.BrandAn unknown brand is at a disadvantage to a widely recognized and respected brand.CostA more expensive cost per unit or overhead costs can be a dangerous disadvantage in any industry that produces commodities.
ValuesIn many cases, customers will purchase from firms that align with their values such as respect for people and the environment. If your firm has a poor ethical climate this can be a significant disadvantage and risk.ProductivityA bloated large firm with a political culture and low motivation amongst employees may be vastly less productive than a small, aggressive firm.
QualityA reputation for low quality such as low rankings on review sites.FeaturesLacking features in products and services that are in high demand by customers.ProcessesProcesses that are error prone, slow or expensive relative to the competition.
Competitive Advantage
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