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Q.4.Compare and contrast the activities of two companies of your choice in the same industrial sector in developing new technology to try to maintain their competitive advantage. Competitive Advantage Competitive advantage can only be achieved if any firm succeeded to provide a superior value to its target customer. That superior value can be any quality that makes the product of this company more suited to the customer than any other product provided by the competitors. Strategy, Process, Context 3 rd Edn 2004 pp231 Competitive Strategies There are three different strategies that allow entities to gain competitive advantage. In these strategies cost leadership seems to be the simplest of the lot. Basically it just focuses on the policies that set the firms to become the lowest in cost while producing any product. Such as several Chinese companies has got main focus to become the cost leaders in the world market. If the firm try to  bring unique characteristics in the product that are not provided by the other in the industry that strategies can be recognized by Differentiation strategy. The other focus strategies is arrange in a narrow scope just by selecting a specific segment or the group of segments. Mainly it does not gives the overall competitive advantage to the firms. Strategy, Process, Context 3 rd Edn 2004 pp261-263 Competitive Advantage Lower Cost Differentiation Competitive Scope Broad Target Cost Leadership Differentiation  Narrow Target 3A. Cost focus 3B. Differentiation Focus Strategy, Process, Context 3 rd Edn 2004 pp261

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