The main Sources of International Competitive Advantage

Prepare and submit a paper on the main sources of international competitive advantage. When a business implements any of the cost leadership or differentiation strategy but in a specific customer target group like in a specific geographical area, the niche segment or a specialized line of products. Competitive advantage is achieved by making optimal use of the resources and the capabilities of the business to create a structure with lower cost or a differentiated product. Achieving a sustainable competitive advantage makes a firm capable of creating more value for its customers and deriving super-profits from the business. The main sources of competitive advantage are asset resources, capabilities, and key success factors. In this report we consider the Porsche cars to study the process of competitive advantage achieved by this line of products. Discussion Porsche is a highly profitable company which manufactures luxurious premium cars. The brand offers elegance and comfort in its products and is segmented as a premium product. Porsche cars have gained an enormous competitive advantage by implementing a focus differentiation strategy.&nbsp.Porsche cars are aimed at a specified niche group of customers who are ready to buy unique differentiated cars at a premium price. Porsche aims to satisfy the segment of niche customers better than the competitors in the luxury sports car industry. The Porsche cars are specifically designed for a premium market where the buyers have unique needs and distinctive preferences than the other buyers.&nbsp.To ensure serving these customers effectively and ensure brand loyalty, Porsche has developed unique aligned capabilities. The mission statement of Porsche is perfectly aligned with their strategic planning thus creating an authentic and unique product. The brand has achieved the ultimate competitive advantage by strategically combining quality and uniqueness in its products. The lean production system adopted in the manufacturing of cars is a key factor in gaining competitive advantage for the product. The resources maintained by the company is carefully chosen and highly maintained. The human resources and the physical resources of the brand add to the value chain. Porsche recruits highly qualified people as their staff and extensively train them to make them competent enough. The employees are imparted with the necessary skills through training centers all over the world and in Germany especially. The company supports and motivates their staff by maintaining a financial incentive structure where a percentage of the yearly turnover is given as incentives to the employees of Porsche according to the company results. The physical resources of the company are of high quality and the manufacturing process involves using materials of high quality and the use of advanced technology (Porter, 2008, p. 68).&nbsp.

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