LOOKING BEYOND COST LEADERSHIP AND DIFFERENTIATION IN THE QUEST FOR COMPETITIVE ADVANTAGES

Abstract

The current business environment, shaped by significant changes in the consumers’ behavior and, also, by a decrease in the demand for products and services, has influenced the way in which the companies are organized and managed, making the quest for sustainable competitive advantages top priority. The companies that will be able to provide customers with superior products and services will have the highest chances of survival. While it is true that times of economic crises causes a large number of companies to exit the market, it is also true that those who manage to adapt and gain sustainable competitive advantages will not only survive, but will be able to fill in the gaps left by their competitors and thus to increase their business. This article wishes to provide a theoretical perspective on the possible sources of sustainable competitive advantages, besides Michael Porter’s cost leadership and differentiation strategies. Following this, we will show how technological innovation, time, efficient use of the resources and designing the best organizational structure can be used as sources to gain sustainable competitive advantages.

Keywords

• Competitive advantages
• Technological innovation
• Resources
• Organizational structure
• Time