As the current waves of globalization continue to sweep through the business world, numerous new opportunities for investment and financing avail themselves to enterprises. For this reason, organizations need to equip themselves fully in order to take advantage of probable sources of competitive advantage which is now developing in the global setting.

Competitive Advantage is a term referring to the conditions which allow an organization or country to manufacture goods or services of equal value at a cheaper price. Through these conditions, it becomes easy for the productivity entity to make more sales compared to other organizations in the market. Competitive advantage has a close relationship with a number of factors such as quality of product, cost structure, intellectual property, branding just to mention a few.

Competitive advantage basically creates a better value for any given firm together with shareholders thanks to the strengths and conditions. The more sustainable a competitive advantage is the harder it becomes for competitors to neutralize it. This will however depend with the competitive advantage that a company is using since there are two types i.e. Comparative Advantage and Differential Advantage.

The Competitive Advantage of Global Finance

With Comparative advantage, a firm is able to produce goods and services more easily and efficiently than competitors thus contributing to an improved profit margin. This is quite the opposite of Differential advantage as it involves a firm producing goods and services which differ from those available in the market. This actually happens when the company has superior personnel, strong brand identity or advanced technology.

The recent trends of globalization have had quite a number of distinct effects on enterprises. This effects were initially not addressed by academics as they did not see any threat. First and foremost, the rapid growing markets have made it possible for firms to operate across borders thus escalating the corporate’s profits. Secondly, most multinational companies now have the capability of integrating globally production processes for them to serve the growing market. By doing so, they are able to achieve customer satisfaction since everything is in line with what clients want.

Last but not least is the fact that multinational firms now have to deal with the different institutional environments and government regulations around the world. This is because countries tend to make use of different laws in order to govern people and enterprises in the most effective manner. An enterprise will therefore have to follow all the rules put in place if they are to carry out their activities without ending on the wrong side of law. 

The competitive advantage of global finance has changed the way companies are now operating. This is because consumers are now benefiting from low prices and good quality service. However, each company is trying to make use of the strongest competitive advantage in order to get hold of the entire market. To make this possible, a multinational firm must be ready to come up with a strategy which cannot be easily imitated by other companies in the industry. Government or Private Employees Who are getting PF amount to check the balance statement by using UAN Login in EPF India web portal.

  Modified On Feb-05-2019 12:47:13 AM

Leave Comment