73451
Description
Competitive Advantage & Added Value
- Competitive advantage
- This is when you have an advantage over competitors as
you are offering your customers greater value. This could be
in terms of having lower prices, providing a USP or any other
added value feature that justifies higher prices.
- Advantages
- Gain more customers
- More revenue
(possibly more profit)
- More customers leads to
becoming more well known
and growing as a business
- Gain more customers
- Disadvantages
- Costly
- Time consuming
- Costly
- This is when you have an advantage over competitors as
you are offering your customers greater value. This could be
in terms of having lower prices, providing a USP or any other
added value feature that justifies higher prices.
- Added Value
- Increasing the value of a product by
improving/adding features which allow higher prices
to be charged, e.g. a unique selling point (USP)
- Advantages
- Higher prices can be charged
- Customers are likely to get
value for money
- Gives them a
competitive advantage
over competition
- Higher prices can be charged
- Disadvantages
- If it costs a lot to make a high
price will have to be charged
which may put customers off
- If the customers feel the value added onto
the product doesn't warrant the price, the
business may loose customers
- If it costs a lot to make a high
price will have to be charged
which may put customers off
- Increasing the value of a product by
improving/adding features which allow higher prices
to be charged, e.g. a unique selling point (USP)
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