Competitive Advantages
- Created by: bethany_george
- Created on: 29-05-17 17:43
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- 2.1.3
- R&D
- Gaining competitive advantages
- Lowering prices
- Quality: creating maximum value for consumers
- Lowering average costs
- Niche market
- Strong brand reputation 7 loyalty
- Good customer service
- Gaining competitive advantages
- Incentive to increase market power
- Enables firms to have USP
- This increases brand recognition and loyalty
- Which in the long-run increase firms revenue & profits
- This increases brand recognition and loyalty
- Enables firms to have USP
- Product & process innovation
- Technology
- Increasing this could increase firms efficiency, productivity & potentially quality.
- Lead to development of new products & potentially new markets.
- May destroy existing markets however.
- SME''s
- Helps create jobs, boost employment, stimulates investment & promotes competition.
- (Small & Medium Enterprises)
- Technology
- Role of state funding
- Increase in R&D can lead to economic growth
- Potentially leading to higher GDP, income levels & employment
- Govt. provides funding, mostly for merit good (+ive externalities) via subsidies e.g.
- Encourages production and output for firms & lowers their AC.
- Could create O.Cost 7 potential increase in taxes to fund Govt. spending. Could create Govt. failure in LR.
- Encourages production and output for firms & lowers their AC.
- Increase in R&D can lead to economic growth
- Product Life cycle
- R&D
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