Research Methodology
BSNEU – [Competitive Advantages of Viettel in the Market] | Literature Review | |
1. Definition of competitive advantage
There are many different points of view and definitions about competitive advantage. Competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices, it usually originates in a core competence. Competitive advantage allows the maintenance and improvement of one firm’s position in the market. Having competitive advantage means that a firm has the ability to distinguish itself from its competitors. Competitive advantage is emerged from internal sources where enterprise makes good use of its resources or capabilities and by adopting the right strategy, to turn their capabilities into core competencies. External sources that related to changing customers’ demand, prices and technology can also be exploited to create one enterprise’s competitive advantage.
Nowadays, the competition among firms in any industry is becoming fiercer than ever before. Michael Porter used to talk about competitive advantage as follow: “The importance of competitive advantage could hardly be greater” and “competitive advantage is at the heart of a firm’s performance in the competitive market”.
A competitive advantage exist when one firm can be able to deliver the same benefits as its competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competitors (differentiation advantage). Thus, a competitive advantage enables the firm to create superior values for its customers and superior profits for itself.
“A sustainable competitive advantage (SCA) is the prolonged benefit of implementing some unique value-creating strategy not simultaneously being implemented by any current or potential competitors along with the inability to duplicate the benefits of this strategy” (Barney.J).
SCA
1. Definition of competitive advantage
There are many different points of view and definitions about competitive advantage. Competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices, it usually originates in a core competence. Competitive advantage allows the maintenance and improvement of one firm’s position in the market. Having competitive advantage means that a firm has the ability to distinguish itself from its competitors. Competitive advantage is emerged from internal sources where enterprise makes good use of its resources or capabilities and by adopting the right strategy, to turn their capabilities into core competencies. External sources that related to changing customers’ demand, prices and technology can also be exploited to create one enterprise’s competitive advantage.
Nowadays, the competition among firms in any industry is becoming fiercer than ever before. Michael Porter used to talk about competitive advantage as follow: “The importance of competitive advantage could hardly be greater” and “competitive advantage is at the heart of a firm’s performance in the competitive market”.
A competitive advantage exist when one firm can be able to deliver the same benefits as its competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competitors (differentiation advantage). Thus, a competitive advantage enables the firm to create superior values for its customers and superior profits for itself.
“A sustainable competitive advantage (SCA) is the prolonged benefit of implementing some unique value-creating strategy not simultaneously being implemented by any current or potential competitors along with the inability to duplicate the benefits of this strategy” (Barney.J).
SCA
References: 1. Michael Porter (1998): Competitive Advantage. Creating and Sustaining Superior Performance. 2. Vietnam Telecom Report Quarter 1, 2012 3. The review of Vietnam Telecom Sector, 2011 4. Vietnam Post and Telecommunications Newspaper 5. Mobile Communication Magazine 6. Website: www.itu.int 7. Website: www.gpc.com.vn