Maintenance of Competitive Advantage by Ford, GM and Toyota

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Maintenance of Competitive Advantage by Ford, GM and Toyota

Maintenance of Competitive Advantage by Ford, GM and Toyota

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In business, competitive advantage refers to possessing advantage over competitors (Porter, 1986). This advantage is that which comes as a result of smart and conscious strategic plans as compared to other factors. Success and failure of a company is highly dependent on competition and this implies that he way competition is handled is very crucial to the business process. When an organization creates and sustains profits that exceed the average among competitors, it is said to possess competitive advantage (Alan, 2009). The architect of this term is seen to be Michael Porter (1980) who described a scheme consisting of three strategies that business firms use to create and maintain competitive advantage.

Maintenance of Competitive Advantage by Ford, GM and Toyota

According to him, two types of advantages exist namely, cost and differentiation advantage (Kearney, 1992). Business firms today are keen on developing strategic plans that will efficiently give them advantage to their competitors. In this study, three companies that are the leading automobile companies in North America are assessed with an aim of analyzing the strategies they use in their competitive business area. The three leading automobile associations are Ford Motor Company, General Motors and Harley-Davidson, Inc.