From the course: Developing a Competitive Strategy
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The two faces of competitive advantage
From the course: Developing a Competitive Strategy
The two faces of competitive advantage
- Managers often have great difficulty figuring out where to start when analyzing the nature of their competitive advantage, or lack thereof, relative to competitors. In analyzing your competitive advantage relative to one or more competitors, the key is to remember that there are two phases of competitive advantage, onstage and backstage. Onstage competitive advantage or disadvantage refers to the perceptions of target customers about how your goods and services compare with those of competitors along the criteria that are important to them in making their buying decisions. In the case of Coke versus Pepsi, customer buying criteria may include perceived taste, brand image, ubiquitous availability, and price. Onstage competitive analysis must always be the starting point in figuring out what competitive advantage you do or do not enjoy. Customers' beliefs are far more important than what you believe. You may think that you are an innovative company, or that you produce really high…
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