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"It is always expensive to gain a competitive advantage". Discuss.
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| Submitted: Mon Aug 11 2003
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"It is always expensive to gain a competitive advantage". Discuss. Competitive advantage can be achieved in many ways. One of the ways a company can look to gain a competitive advantage is through cost leadership. This involves businesses trying to produce goods or services at a lower cost than its competitors allowing it to charge lower prices than rivals and possibly to compete in price wars that can take place. An example of this is with the airlines "Easyjet" and "Go" they offer a low frills service to keep prices down, no on-board meals are served on Easyjet planes, this is just one way costs are lowered. This way of gaining a competitive advantage is not expensive because it involves cutting costs, however the profit margin is likely to be lower because prices are as low as possible. Another way firms try to gain competitive advantage is through differentiation. This is where...
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