1. Provide a definition of specific environment. (At least 2 sentences, one source)2. Provide an explanations of how a couple of the these elements can influence the sustainability of a company’s competitive advantage. (At least 6 sentences, 3 sources)3. Provide an example of how an element from point 2 influence the sustainability of a company’s competitive advantage. (At least 2 sentences, one source)
Question
1. Provide a definition of specific environment. (At least 2 sentences, one source)2. Provide an explanations of how a couple of the these elements can influence the sustainability of a company’s competitive advantage. (At least 6 sentences, 3 sources)3. Provide an example of how an element from point 2 influence the sustainability of a company’s competitive advantage. (At least 2 sentences, one source)
Solution
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The specific environment refers to the forces and institutions outside that affect an organization's ability to serve its customers. These include suppliers, customers, competitors, and various market, sector, or industry factors. (Source: BusinessDictionary)
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The elements of the specific environment can significantly influence the sustainability of a company's competitive advantage. For instance, suppliers can affect a company's competitiveness through their ability to control the availability and price of essential inputs (Source: Porter, M. E. (1985). Competitive Advantage). Customers, on the other hand, can influence a company's competitive advantage through their buying power and preferences. If a company can meet the unique needs and wants of its customers better than its competitors, it can achieve a sustainable competitive advantage (Source: Barney, J. (1991). Firm Resources and Sustained Competitive Advantage). Lastly, competitors and the overall industry structure can affect a company's competitive advantage. A company operating in a highly competitive industry may find it challenging to maintain its competitive advantage over time (Source: Porter, M. E. (1979). How Competitive Forces Shape Strategy).
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An example of how an element from point 2 can influence the sustainability of a company's competitive advantage is Apple Inc. Apple has been able to maintain its competitive advantage through its unique ability to design and develop its own operating system, hardware, application software, and services. This control over all aspects of its product and service offerings, from design to production, allows Apple to differentiate itself from its competitors and command premium prices, thus sustaining its competitive advantage (Source: Yoffie, D. B., & Baldwin, W. (2018). Apple Inc. in 2018).
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