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4 Area to Identify a Competitive Advantage Company to Invest

With the emerging of globalization, more and more innovative products and services is being market which result in a fierce competition among companies to attract customer and grab market shares in order for them to survive and gain profits. The only way a company can outperform its competitors is that they must have Competitive Advantage.

A company that has competitive advantage will has strong long term pricing power, good economic franchise, and high entry barriers. With competitive advantage, a company will have a favorable long term prospects that most shareholder would like to have. The companies that have competitive advantage are McDonald, BMW, and a lot more.

The benefit by having competitive advantage is they are able to command good product pricing and not lose any market shares. They also have a strong pricing power and purchasing power will enjoy handsome profit margins.

The 4 Areas that a company has a durable competitive advantage over their competitors can be identify

o Business which has a repetitive consumer needs with their products that wear out fast or are used up quickly and this can make sure consumers keep coming back for their products
o The advertising power of the business and having brand appeal shows that the company is able to market in many place and able to build up a brand that satisfied customers needs
o Business that provide repetitive services that people and businesses are consistently in needs of
o Products that most people have to buy at some time in their life guarantee they come and buy from you at least once

These 4 areas are very closely related to consumer demand and expenditure and this shows that a company is able to generate huge profits when they can fulfill the areas that satisfy the customers. Take note that a company having competitive advantage can surely outperform its competitors and gain handsome profits and this shows that the company will be able to survive worth investing through the long run.