Competitive Advantage M6
REPUBLIC OF THE PHILIPPINES NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY COLLEGE OF MANAGEMENT AND BUSINESS TECHNOLOGY SUMACAB MAIN CAMPUS
Submitted to: Mrs. Joy N. Savelleno Submitted by: Tagaza, Lovely Joy DR. Ucol, Mikee B. Valentino, Angelica Rose S. Quilit, Lorelie J. Pascual, John Carlo January 2015
Introduction & Definition
Competitive advantage exists when a particular company consistently outperforms other companies in the same industry. A company is considered to be outperforming others if profits are higher than the competition's profits. The competitive advantage is thought to be stronger when it lasts for a longer period of time. Those companies who are able to maintain a competitive advantage for many years are thought to have a sustainable competitive advantage.
Understanding the Concept
Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.
Sustainable competitive advantages are required for a company to thrive in todays global environment. Value investors search for companies that are bargains. In order to avoid purchasing a value trap one of the factors we search for is sustainable competitive advantages.
Without one or more sustainable competitive advantages a company may not be able to recover from whatever caused the stock to become a bargain. We only want to buy the stocks of companies that are real value investments, not value traps. In other words, we want to buy stocks trading below their intrinsic value and will grow cash flow for shareholders.
If sustainable competitive advantage is dependent on
Submitted to: Mrs. Joy N. Savelleno Submitted by: Tagaza, Lovely Joy DR. Ucol, Mikee B. Valentino, Angelica Rose S. Quilit, Lorelie J. Pascual, John Carlo January 2015
Introduction & Definition
Competitive advantage exists when a particular company consistently outperforms other companies in the same industry. A company is considered to be outperforming others if profits are higher than the competition's profits. The competitive advantage is thought to be stronger when it lasts for a longer period of time. Those companies who are able to maintain a competitive advantage for many years are thought to have a sustainable competitive advantage.
Understanding the Concept
Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.
Sustainable competitive advantages are required for a company to thrive in todays global environment. Value investors search for companies that are bargains. In order to avoid purchasing a value trap one of the factors we search for is sustainable competitive advantages.
Without one or more sustainable competitive advantages a company may not be able to recover from whatever caused the stock to become a bargain. We only want to buy the stocks of companies that are real value investments, not value traps. In other words, we want to buy stocks trading below their intrinsic value and will grow cash flow for shareholders.
If sustainable competitive advantage is dependent on