To Be Competitive, The Best Managers ______.

To Be Competitive, The Best Managers ______. A. prioritize cost competitiveness over all other factors B. ignore customer feedback and changes in market conditions C. disregard the role of sustainability D. focus on all six sources of competitive advantage

Answer Of MCQ With Six Sources Of Competitive Advantage / Edge

What Is Competitive Advantage (CA)

When a company provides unique or quality products or services which differentiates it from its competitors and gives an edge over its competitors then we say that this company has competitive advantage over its competitors in the marketplace. A company can gain CA by increasing its skill, quality and other factors which are discussed here.
The correct option of this multiple choice question is D, as to be competitive, the best manager must focus on six sources of competitive advantage which are explained below:

1. Cost Competitiveness Or Cost Leadership Strategy

The manager should adopt this strategy in order make sure that the cost of production and cost of distribution should be as low as possible in order to offer lower prices of products or services to customers. A company provides lower prices than its competitors in the market gain competitive advantage and earn profits due to massive increase in sales as more customers are willing to buy from such company than the company which charges higher prices. It makes the company possible to gain advantage over its competitors.

2. Customer Focus

If a company or an organization wants to gain advantage over its competitors, then it should give focus to customers’ satisfaction. The customer is the king as if the customers are satisfied with the quality of products or services, they become happy and are more willing to buy from such company and as a result, the company can earn huge profits and can grow and expand in the market than its competitors. So, there is a need to build better customer relationships. This is done by satisfying them. Satisfaction of customers is only possible when the company understands their needs and wants and provides the solutions to their problem i.e., if there is need of water supply in a specific area, then the company should provide mineral water bottles in such area to solve their problems in order to satisfy them and gains competitive advantage.

3. Differentiation

If a company provides unique quality products or services than its competitors in the market, then the company gains an edge over its competitors by creating differentiation. For example, if a company manufactures a unique quality laptop computer due to its distinctive features i.e., motherboard quality, different layout & designing, etc., then such company created brand loyalty by creating brand image in the minds of customers.

4. Innovation

A company providing new products or services and update itself according to the market demands surely gain an edge over its competitors. Developing new methods or processes for products development can give an advantage over its competitors as customers likes new quality products & services which meet their needs on time. For example, due to change in technology, new and updated technology system should be adopted to improve working performance and to reach more customers in time to solve their problems quickly such as the use of AI, cloud computing, automation, etc.

5. Sustainability

Sustainability means the quality to survive the business over a long period of time. If a company’s business is more sustainable than its competitors, then this will also give such company an edge over its competitors. Sustainability is established by making effective internal processes and systems to improve work performance and reduce the wastage of resources and establishing relationship with partners & stakeholders better than its competitors to gain advantage.

6. Ethics

The company who establishes ethical values and set ethical principles can gain competitive advantage. If the company is satisfying customers, then it should be based on moral grounds i.e., what is right for them such as providing better quality products or services that are considered better for them e.g., providing fresh and pure honey, milk, etc. This builds trust with customers.

By setting moral values and standards in an organization encourage employees to work efficiently and effectively and as they rewarded with justice. In this way, the trust of company is increasing among employees. Similarly, the company can build better relationships with its stakeholders on moral and ethical values.

The options A, B and C are incorrect choices here as these statements are not suitable for the organization to build the competitive advantage over its competitors.

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