Usually, in implementing strategic competitiveness, other companies are unable to duplicate or follow it. Some even feels that it is too costly to follow. With this, we can say that the firm has a competitive advantage. Competitive advantage is what allows a firm to gain an edge over its rivals and it enables a firm to generate successful performance over an extended period of time. In other word, we can say that competitive advantage comes from a firm's ability to perform activities more distinctively or more effectively than rivals.
So, in order for a firm to earn more, they must have a better understanding to exploit its competitive advantages. By this, it can help the firm to earn above-average returns. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
These terms are very important to those are responsible for an organization's performance. It is because without full understanding of these terms, they cannot survive in the world of business and it will affect the performance of the firm. For instance, if certain firms do not really understand of these terms, their competitors might have great opportunity to take off or control of a certain area of business that might bring a great loss or less opportunity to gain extra income for the firm. So, it is very important for the firm to know these terms.
Besides that, the firm can plan a strategic management process if they have this sort of understanding of these terms. With strategic management process, firms can...