Competitive Advantage & Added Value

bennevin26
Mind Map by bennevin26, updated more than 1 year ago
bennevin26
Created by bennevin26 about 7 years ago
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Business & Economics Unit1 Mind Map on Competitive Advantage & Added Value, created by bennevin26 on 05/06/2013.
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Competitive Advantage & Added Value
1 Competitive advantage
1.1 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.
1.2 Advantages
1.2.1 Gain more customers
1.2.2 More revenue (possibly more profit)
1.2.3 More customers leads to becoming more well known and growing as a business
1.3 Disadvantages
1.3.1 Costly
1.3.2 Time consuming
2 Added Value
2.1 Increasing the value of a product by improving/adding features which allow higher prices to be charged, e.g. a unique selling point (USP)
2.2 Advantages
2.2.1 Higher prices can be charged
2.2.2 Customers are likely to get value for money
2.2.3 Gives them a competitive advantage over competition
2.3 Disadvantages
2.3.1 If it costs a lot to make a high price will have to be charged which may put customers off
2.3.2 If the customers feel the value added onto the product doesn't warrant the price, the business may loose customers
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