Page 137 - F1 - AB Integrated Workbook STUDENT 2018-19

Competitive factors

Competitive advantage

1.1 Definition

Part of a firm’s external analysis will involve assessing the degree and
sources of competition within the industry. The key issue here is
whether the firm has a sustainable competitive advantage.

This will be analysed in three steps:

 the main competitive forces in an industry

 the different ways a firm can achieve a competitive advantage

 how different activities and departments within the firm contribute to its
competitiveness.

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