Why Do Some Businesses Beat Their Rivals?

Why Do Some Businesses Beat Their Rivals?

Understanding Competitive Advantage Year 9 Commerce NSW Curriculum

WALT (We Are Learning To)

Explain what competitive advantage means Identify how businesses compete for customers Analyse different ways businesses gain advantages Evaluate whether competitive advantages are effective and sustainable Apply business concepts to real-world examples

Success Criteria - How We'll Know We've Succeeded

I can define competitive advantage in my own words I can give examples of businesses with competitive advantages I can explain how businesses meet customer needs better than competitors I can compare businesses using price, quality, and service I can suggest ways a business could improve its competitive position

Think About Your Shopping Choices

When you buy something, do you always choose the cheapest option? What makes you choose one brand over another? Why might you pay more for certain products?

What is Competition in Business?

Businesses compete for the same customers Limited number of customers with money to spend Customers have choices between different businesses Competition drives businesses to improve Winners and losers emerge from this competition

Key Concept

Competitive advantage means a business can perform better than its competitors by being different, better, cheaper, more convenient, more trusted, or more innovative.

Spot the Competitive Advantage

Look at these business pairs: McDonald's vs. local burger shop Apple vs. Samsung Coles vs. IGA Netflix vs. free-to-air TV Discuss: What advantages does each business have?

What Do Customers Really Want?

Price - value for money Quality - products that work well and last Choice - variety of options Convenience - easy to buy and use Service - helpful, friendly staff Brand trust - reliable reputation Ethical values - sustainable and responsible practices

Price vs. Quality Trade-offs

{"left":"Budget Airlines: Jetstar offers low prices but basic service\nPremium Airlines: Qantas charges more but provides better comfort and service\nFast Fashion: Kmart clothes are cheap but may not last long","right":"Premium Brands: Nike costs more but offers quality and brand status\nDiscount Supermarkets: ALDI focuses on low prices with limited choice\nFull-service Supermarkets: Woolworths offers convenience and variety at higher prices"}

How Do We Compare Businesses?

Price - compare costs and value Quality - durability, reliability, performance Location - convenience and accessibility Product range - variety and choice Customer service - staff helpfulness and support Brand reputation - trust and image Innovation - new features and technology Convenience - ease of purchase and use

Business Comparison Exercise

Choose two competing businesses you know well Rate each business (1-10) on: Price, Quality, Location, Range, Service, Brand, Innovation Calculate total scores Which business has the competitive advantage? Explain your reasoning

Ways to Create Competitive Advantage