Competitive advantage and Competitive Necessity – Comparison
Competitive advantage is a business concept describing attributes that allow an organization to outperform its competitors. These attributes may include access to natural resources, such as high-grade ores or inexpensive power, highly skilled personnel, geographic location, high entry barriers, etc. New technologies such as robotics and information technology can also provide a competitive advantage, whether, as a part of the product itself, as an advantage to the making of the project, or as a competitive aid in the business process (for example, better identification. and understanding of customers).
Competitive necessity is another method of selection and prioritization of projects is by making decision basing on the competitive necessity of the projects at hand. Projects aimed at modernization or re-branding already existing projects may be a priority to a given firm or organization if it was to maintain its competitive position in a Market area. Although the planning process for the project may be quiet, sophisticated, the decision to undertake the project is based on a desire to maintain the company’s competitive position in that market. In a similar manner, many universities and schools in the world are restructuring their programs to stay competitive with the more forward-looking institutions. In large part, this action is driven by declining numbers of tuition-paying students and the need to develop stronger programs to attract them. Investment in an operating necessity project takes precedence over a competitive necessity project, but both types, of projects, may bypass the more careful numeric analysis used for projects deemed to be less urgent or less important to the survival of the firm.