ENT 610 – Week 4 Discussion: Competitive Advantage & Value

Porter argues “If a strategy is to have any real meaning at all, it must link directly to your company’s financial performance (Magretta, 2012). Often times companies seek to beat their competitors by having a lower price or quicker delivery times. Many times, this is done at the expense of having poor quality products or services. As stated in the reading Understanding Michael Porter, “If you have a real competitive advantage, it means that compared to rivals, you operate at a lower cost, command a premium price, or both” (Magretta, 2012). There are different methods that companies have taken to be among the best at what they do. However, the perceived value among customers is ultimately the determinant.

This customer value, or buyer value, is only art of the overarching value system. Another factor in the overarching value system is a company’s value chain. This can be defined as “… a sequence of activities your company performs to design, produce, sell, deliver and support its products…” (Magretta, 2012). As entrepreneurs begin to reassess their value chain, they can see the importance of each variable. Each activity is seen as more than having a cost associated with it, but rather a mandatory value additive to the finished product or service being offered. By changing the scope and view of the value associated with a product or services, entrepreneurs will be taking a step in the right direction- imp roving their competitive advantage.


Hyman, M. R., & Sierra, J. J. (2010). Marketing research kit for dummies. Hoboken, NJ: John Wiley & Sons Inc.

Magretta, J. (2012). Understanding Michael Porter: the essential guide to competition and strategy. Boston, Mass: Harvard Business Review Press.

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: