Edexcel Business A Level Revision

Global competitiveness -  is the ability of a business, usually a MNC, to perform better than its rivals across markets in different countries. This can be achieved through performance on price and quality or customers' perception of these factors.  Competitive advantage - is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.    Cost competitiveness - the differences in unit costs between competitors. Outsourcing -  A practice used by companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Outsourcing is an effective cost-saving strategy when used properly. Offshoring -  When a company moves various operations to another country for reasons such as lower labour costs or more favourable economic conditions in that other country. This topic is split into two; ...

Porter's Strategic mix -  describes how a company pursues competitive advantage across its chosen market segment by using four generic strategies: mass vs niche and lowest cost vs highest differentiation strategies. Competitive advantage - An advantage over the competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher price. Lost-cost positioning -  Where a business is able to operate at the lowest unit cost in the market, enabling it to charge lower prices than the competition or earn a higher profit margin Differentiation positioning - Where a business is able to distinguish its product or service in the minds of consumers as offering better value - perhaps through quality, branding or other attributes that consumers value Porter suggested two overall business strategies that could be followed in order to gain a competitive advantage: Low cost Differentiation I...