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pantera1 [17]
3 years ago
10

What is competitive advantage and how does it relate to a company’s business mode?

Business
1 answer:
elena-s [515]3 years ago
5 0

Answer:

Competitive advantage is an economic category, which means that an economic entity has unique characteristics that distinguish this economic entity from other similar entities in the market.

Explanation:

Competitive advantage is an economic category, which means that an economic entity has unique characteristics that distinguish this economic entity from other similar entities in the market.  Competitive advantages and disadvantages are identified in the process of comparing the elements of activity of market participants with elements of the activities of rivals. So, for example, you can determine whether a business idea is better or worse, the name of the created or acquired company, the composition of the personnel, management and top management of the company, business models, tools and objects of work used in business, business communication.

Each enterprise enters the market with the aim of achieving its goals and objectives, maintaining or protecting its market share. However, because there are so many competitors in the free and competitive markets that can meet the same consumer demand, they may prevent the enterprise from achieving this goal. To be able to cope with or prevent them from attacking, an enterprise must develop its own competition policy and competitive strategy, ie the concept of using its resources to prevent and resist competitors' actions against it and its goals. The prerequisite for success in free and competitive markets is that there are many consumers (or buyers) who perceive products or products offered by the enterprise as superior products over similar products of their competitors due to their parameters (quality, technical, operational, economic, etc.). To achieve this, every enterprise should strive to outstrip or outpace its competitors in competition. Understanding the need for competition and its discussion leads to a critical approach to the consumer-oriented marketing concept that the purpose of marketing is to meet the needs of consumers. Thus, when a consumer orientation is viewed as a means of ensuring that the enterprise's products meet the consumer's expectations and expectations, it does not mean the need to outpace or outpace competitors. Because consumer expectations are, to a large extent, dependent on what competitors offer them. It is also wrong to change the consumer orientation of marketing to competitors. Because being an enterprise leader in competition means better than its competitors, it also means better understanding of consumer needs. An attempt to organize a business more efficiently by shifting focus from consumer to competition can lead to certain advantages over competitors. These advantages will be in addition to the advantages revealed by the consumer's orientation, which will be either undesirable or less desirable. In fact, the enterprise does not need to outpace its competitors in all its supply parameters. He needs to overcome his competitors in settings that are of importance to the consumer. What parameter is more important and important to the consumer can be determined by the consumer orientation. The emphasis on competition, rather than on consumers' needs, is the result of its overstatement. Therefore, the enterprise must continuously monitor the competition and at the same time not overlook the consumer's needs. The competitive research process results in the development of a competitive strategy. The development of a competitive strategy involves four stages:

1) defining the characteristics of competition;

2) collecting and analyzing competitors' information;

3) identification of possible variants of competitive strategies; and

4) selection of a competitive strategy or strategy.

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deff fn [24]

The answer is : The demand is elastic.

Elasticity =

[(80,000 - 180,000)/((80,000+180,000)/2)]/[($40 - $30)/(($40 + $30)/2)]|

[(-100,000/130,000)]/[(10/55)] = -.7692/.1818= -4.23

The answer is -4.23, however when considering own price elasticity of demand, we ignore the negative sign and look at the absolute value to determine whether it is elastic or inelastic.

5 0
3 years ago
For many years you have been using your local, small-town bank. One day you hear that the bank is about to be purchased by Bank
kari74 [83]

Answer:

If I was banking with my local town bank and it happens that Bank of Africa purchases it, there are cost and benefits associated with the merge. First, Bank of America is global, meaning that I will be able to access the Services such as ATM services at different points. Second, due to its area of coverage, the services are cheaper compared to the ones I got when it was in my local town. However, due to the monopoly of the bank, they might increase the charges making them more expensive than when the services in the local village. Additionally, it will be a challenge for average customers, such as farmers, to access big banks unless faithful people accompany them.

Explanation:

7 0
3 years ago
On August 1, 2020, Ascent Corp. borrowed $80,000 cash on an 8-month note payable with a 7% annual rate that requires Ascent to p
Ipatiy [6.2K]

Answer and Explanation:

The computation is shown below:

Interest payable:

= Borrowed amount × rate of interest × given months ÷ total months

= $80,000 × 7% × 5 ÷ 12

= $2,333.33

And,

Interest expense:

= Borrowed amount × rate of interest × given months ÷ total months

= $80,000 × 7% × 3 ÷ 12

= $1,400

So here for recording the payment of interest the interest payable is debited for $2,333.33

The same is to be considered

6 0
2 years ago
You will receive $5,000 a year in real terms for the next 5 years. Each payment will be received at the end of the period with t
photoshop1234 [79]

Answer:

$20,229.5

Explanation:

Given:

Amount to be received = $5,000

Time period, n = 5 years

nominal discount rate = 10.725%

inflation rate = 3 percent

Now,

Using the Fischer's relation, we have

1 + Nominal rate = ( 1 + Real rate ) × ( 1 + Inflation )

on substituting the values, we get

( 1 + 10.725% ) = ( 1 + Real rate ) × ( 1 + 3% )

or

1.10725 = ( 1 + Real rate ) × 1.03

or

( 1 + Real rate ) = 1.075

or

Real rate = 1.075 - 1 = 0.075 or 7.5%

Thus,

Present Value of an ordinary annuity that makes $5000 every year payment for 5 years will be calculates as:

Present value = Monthly payment × [\frac{(1-(1+r^{-n})}{r}]

or

Present value =5000\times[\frac{1 - (1 + 0.075)^{-5}}{0.075}]

or

Present value = 5000 × 4.0459

or

Present value = $20,229.5

3 0
3 years ago
What are the pros and cons of being a single decision-maker?
Tanya [424]

Pros:

No one can stop you from picking that person/place/thing.


Cons:

you don't know what to decide.

6 0
3 years ago
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