Maintaining Competitive Advantage Essay Example | Topics and Well Written Essays - 500 words

Maintaining Competitive Advantage - Essay causaThe firm applies three types of competitive advantage in its operations i.e. cost leadership, differentiation (of product, image, service, sales, distribution and marketing) and last focus in cost and differentiation. (Palmer and Hardy, 2000) amazon examines activities performed in their organization and relates how each activity is connected to the other. These activities be the main sources of the advantage, they includes marketing, operation among others. By performing these strategic activities (a method commonly known as comfort bowed stringed instrument) in a better and a cheaper way than its competitors the firm gains the competitive advantage.Value chain helps Amazon to understand the existing probable sources of differentiation and the general behaviour of the existing costs. Activities affecting Amazons buyer activities be the key determinants of differentiation results. Cumulative costs in the value chain are used in det ermining the overall difference between the producer cost and the buyer value of Amazon. The value chain clearly indicates that competitive advantage can emanate anywhere along the chain value.According to usher (1998) competitive advantage entails managing firms value chain as a system rather than a assembly of separate parts. Amazon makes application to this by making a choice of performing activities in a way that is different from the rivals.