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Core Competencies should change in response to changes in the company's environment. They are flexible and evolve over time. As a business evolves and adapts to new circumstances and opportunities, so its Core Competencies will have to adapt and change.
What is Competitive Advantage ?
- When a firm sustains profit that exceed the average for its industry , the firm is said to possess competitive advantage over its rivals .
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Michael Porter identified two basic types of competitive advantage : Cost Advantage and Differential Advantage
A competitive advantage exists when a firm is able to deliver the same benefits as competitors but at a lower cost ( cost advantage ) , or deliver benefits that exceed those of competitive products ( differential advantage )
Thus a competitive advantage enables a firm to create superior value to its customers and superior profits for itself ...
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