Competitive Advantage

Based on the analyses that you have performed, you should now have a good idea of where your business stands in relation to its competition, what sets it apart from these other companies. Ultimately, what will make your business succeed in the long term is its ability to sustain an advantage over the competition. It is the goal of all large corporations to achieve a sustainable competitive advantage in their industry.

Competitive advantages arise from the distinctive competencies of a business or what a business does particularly well. For example, one of Wal-Mart's competitive advantages would be their worldwide distribution network, which allows them to be a low-cost mass retailer. The company does this better than anyone else in their industry, and that is one of the main reasons why they have enjoyed continued growth and success.

A competitive advantage might stem from advanced technology, a powerful brand name, premium service, or superior knowledge of a particular product or service. By analyzing your company using the TOWS framework in the context of your business environment, you should be able to see where your business can derive its edge over the competition.

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