Why Companies Lose Competitive Advantages Marketing Essay

This task is the area of the requirement of the partial fulfillment of the course â. . COde need to be mention'Research Design'. The purpose of this project is to perform an appropriate research methodology keeping in mind different worldviews, define strategy of inquiry in order to research and identify the reason why i. e. , why a company would lose its competitive gain among its competitors and what countermeasure can be taken to support its competitiveness? This survey also highlights the study methodology for this particular problem considering combined method approach concentrating on data collection techniques and data research. Furthermore, it reveals the factors, that have an effect on competitive advantages for a business keeping both user's or customer's and company perspective. We think about this methodology a proper for such kind of problem and are hopeful that it will provide some concrete results form of advice or benefits.

In today's time market is growing with a fantastic progress. Globalization, technology development and technology revolutionized the whole composition of market. Such progression leads companies into powerful competition among different organizations within the same industry. Technology analysis compelled companies to shoot for many companies have pursued their existence and thus novel innovations. Change in market gave birth to new customs and traditions place the businesses and companies into battling problem. The successful factors for companies recently are much more diverse in contrast with current market transaction. The winning advantage of any companies is its constant learning knowledge, strength in technology and technology, entrepreneurship and technology. Competition among organizations and sectors is a continuous process and companies leading the industry in their domain contain some uniqueness that discerns it from rivalries. Companies who religiously follow market fads survive lucratively in the business environment.

Competitive gain is one of the factors, which supports companies within same industry at industry leading. However, discussed prior companies facing incredible problems to maintain their uniqueness anticipated to persistent scientific advancement and development. On this research I'll illuminate on competitive advantage, their factor and exactly how to cope with it.


Peter reported that company is loosing their competitive advantage in market, and significant measure needs to be studied to overcome this problem. For just about any company to endure within an industry its necessary to gain some distinguishes within an industry. If companies lose their competitive advantages, they may encounter serious effects if not handle intelligently.


Competitive Advantage

"A competitive edge is an advantages over competition gained by offering customers increased value, either by means of lower prices or by providing better benefits and service that justifies higher prices. "

How Companies Formulate their Strategies to be able to Gain Competitive Advantage?

According to Michael Porter there are four business strategies that may be adopted to be able to get competitive advantage in industry. They are summarized in below number

http://teacher2u. net/business/images/competitive_strategies. gif

Strategy Differentiation: It really is associated with top quality price, which demonstrates high development cost and further features added in something. Example can be Mercedes automobiles.

Strategy cost Authority: companies who do business on a large scale, where the product is of standard type and less differentiation is engaged, usually abide by it. This theory says to reduce production cost. Low priced leader will concentrate on discounts to increase its sales. Good examples are Dell computer systems and Nissan motors etc.

Strategy Differentiation Concentration: Within this business make an effort to focus either using one or few numbers of target market segments. The target is to investigate the needs and wants of customers, which have not been discovered by the rivals who provide, generalize product. Example can be any successful area of interest businesses.

Strategy Cost Concentrate: In such type businesses try to gain edge on basic products, providing low priced, the feature of the product would be like the high price on the market and also would be acceptable to large level of consumers, so in a nutshell to penetrate on the market on low price basis. Example can be sellers having their own label or discounted label costs.

Why Companies Lose Competitive Advantages?

There is no specific standard provided to figure out such reasons, ongoing swift in scientific development, innovations can be considered focal motives. Besides these giant factors there are a few common basis on which company manages to lose its competitive advantages in market.

Changes in Customer Choices: Companies usually starts off ignoring the value of customers. Need for customer value should be at the top priority. A customer drifting away is super easy due to intense competition is available and companies endeavors should be prolonged in this continuum.

Challenges from Competitors: Competitors constantly try to break the ice by introducing new and different products to be able to fully capture and divert consumers from the main firm.

Internal Changes: Changes took place within an corporation also brings about losing competitive benefit. For example new CEO may bring alteration running a business strategies and change the course, which may create ambiguity within employees, and hence extreme results may encounter.


Methodology is the plan or strategy that links solution to effects while methods is the approach or treatment to be used in order to reach to the goal/get the outcomes of the research. You will discover four different philosophical worldview or college of thoughts about knowledge state but selecting a proper strategy is the critical and building step good research. [cresswell &Commonwealth]It is also apparent from the books that understanding characteristics of the problem is important in a manner that it determine the broader worldview under which it are present and also clarify the strategy of inquiry and method or tool for executing research. [cresswell] In this specific analysis, our problem comes under pragmatic worldview and the reason for this is shown in the below section.

Pragmatic Worldview

Considering the condition statement "Peter argue that the company is burning off its competitive edge and that we should do something" seems to be the outcome of activities, situation or outcomes, which mainly is the concern of pragmatic viewpoint. Relating to [cresswell], in pragmatic worldview the challenge is more important when compared to a method and researcher give attention to all methods to understand the problem. The primary matter in this idea is with software- "what works" and on way to the condition.

Strategy of Inquiry

The strategy of inquiry in this review use a mixed method way considering both qualitative and quantitative strategies concentrating on "what" and "How". Further in a sequential order by performing quantitative study accompanied by qualitative study. Matching to [cresswell] the researcher in pragmatic worldview is free to choose whatever approach, strategy and method are ideal to his/her research. In this study the main concentration will be on exploring the "what" part in our problem i. e. , what exactly are the factors impacts the competitive benefit of a company. The info collection in this period will be carried out using survey by using questionnaire among the customers or users representing a sample of population. Both available and close-ended questionnaire will be utilized for data collection from users/customer. It'll result in determining the reason why user are not satisfied with the company's services, how many other competitors provide better than comparing to decided on company, what are the end customer requirements and their rank about different capabilities like cost, service, complex supports, consistency etc.

The questionnaire would be user-centric in order to recognize user's preferences and their priorities for different requirements using position level 1-5 where 1 means least expensive top priority and 5 means the highest priority. The goal of this user requirement specific questionnaire is to identify the different facet of services to which consumer is more critical and very sensitive and that they can do compromises.

Structure of Customer Requirement's Specific Questionnaire

User Requirement


No. of Respondent




Technical Support


Structure of User Requirement's Specific Questionnaire

The second questionnaire is again from the same test (using user existence/requirements however in comparability to other rivals) but this is more specific to the services which other competitor in market provide them better than the determined company. Quite simply, the position of services from Bad to Excellent by individual to the determined company services in comparison to others services on the market. The purpose of this questionnaire is to identify which part of services the picked company is lacking off, or which services other rival provides easier to the customer than the determined company.

User Preferences


No. of Respondent




Technical Support


In the next phase in our research, we would like to learn the organizational influence on company competitiveness such as change of role, change in team members etc. For this purpose, unstructured interviews will be conducted with the CEO and Director of your company. These interviews will help researcher in extracting data, which would provide way to find the problem, and therefore alternatives would be formalized consequently. The researcher should point out to construct questions for interview in a way, which can only help in extracting the main problem. The concentrate on questions should be related to quality control, customer care, cost control, change of role, employee's incompetence, etc during interview to seek out required information.


After data collection level research of the collected data is required. In this level all the outcomes should be examined accumulated from the review (questionnaire) conducted from the users (exterior) and interview conducted from CEO and manager of the company (inner). By analyzing we imply to compare which areas are delicate and which factors are critical in both cases, which lead company towards loosing their competitive benefits. Next step we could do with to converge the factors, that have same level of level of sensitivity or criticality, involved from external and internal sources. These factors should be examined completely and on that basis solution should be provided.


The advice should be based on the research outcomes. The general view can be that companies should focus on their customers; they ought to constantly revise themselves regarding customer's tastes. They ought to build and keep strong ties with customers to be able to preserve their users. It is rather important to know the needs and wishes of your visitors. Many companies are market leaders on such basis as they consider customers their prior strategy. Companies should also abreast themselves about their rivals activities, they must have always clue what their competition will come up and really should formulate their strategy in a manner that competition would feel difficult to take competitive advantages away from the leading organization within industry. (not completedâ. . )

Girls there r some work I must do in itâlike words, sentence structure, some adding phrases, referencesâ. and perhaps some extra text I will add alterâ. . but this si the entire picture. . i hope it can help u outâ⁊

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