Competitive Advantage Case

According to Investopedia.com, competitive advantage can be defined as an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition. Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. There can be many types of competitive advantages in terms of Innovation Differentiation, marketing differentiation, low cost leadership, quality differentiation and service differentiation.

After interviewing Miss Khew, we can consider that DKSH Holding Berhad has great competitive advantage in service differentiation and quality differentiation, ahead of low cost leadership, marketing differentiation and innovation differentiations aspects. We will take a closer on those criteria below:

Innovation Differentiation

DKSH Holding has good R&D facilities on the production of new products for their clients. Being the number 1 Market Expansion Service in the world, its research experts have the experience from their experience in the region market and the involvement from the headquarters expertise assistance in dealing with product innovation issues so that their clients are able to penetrate their product easily. In addition, they are proficient in marketing client's product using their innovative marketing techniques within the area of a continent, dominantly in Asian markets. However, selling high-priced products are not included in any written job scope of DKSH Holding Berhad as they provide consultation and marketing analysis to their clients. Miss Khew did added that DKSH has patent its own researches on pharmaceutical and marketing analysis which considers as intellectual property of DKSH, due to much effort and time taken to produce comprehensive data for its clients in building their local business. Of course, DKSH have the necessity expertise and resources to conduct marketing techniques for SMEs clients in expanding their business into the local market.

Marketing Differentiation

Consolidated as number 1 market expansion services in the world, DKSH are specialized in building company identification for its customers, in giving variety of advertising or promotional programs in educating customers as well. As a result, DKSH are able to secure reliable distribution channels from building good relationship with its suppliers and distributors. Although Miss Khew does not expose most of DKSH list of suppliers and distributor for us to know, nevertheless she states confidently that DKSH has the capability in improving existing products and producing broad range of products for its clients.

Low Cost Leadership

In terms of DKSH low cost leadership, Miss Khew explains briefly on its reduction cost action of the company. According to her clarification, DKSH offers efficiency and productivity improvements through its expertise