A business strategy which is most effective for a company to create and sustain competitive advantage is a differentiation strategy.
What is competitive advantage?
Competitive advantage can be defined as the factors, assets, conditions, or circumstances that allow a business firm (company) to manufacture finished goods or services better and perhaps, cheaper than other rival business firms (companies) operating within the same industry.
What is a business strategy?
A business strategy can be defined as a set of guiding principles, actions, policies, and decisions that a business organization strategically combines, so as to successfully achieve its goals, objectives, attract potential customers and possess a competitive advantage over its rivals in the industry.
The types of business strategy.
Generally, there are three (3) main types of business strategy and these include the following:
- Cost Leadership business strategy
- Differentiation business strategy
- Focus business strategy
In conclusion, we can reasonably infer and logically deduce that business strategy which is most effective for a company to create and sustain competitive advantage is a differentiation strategy.
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