However, I shall be using the example of two very famous products and services around us. Firstly, I shall be describing the iPhone. This smart gadget, manufactured by Apple Inc, is more than just a phone and has revolutionized the communication and entertainment world around us. Secondly, I shall describe about a famous service that most people are addicted to. This is Facebook, the social networking website that has become one of the most popular websites of all times with millions of members from around the world.
Competitive advantage refers to the advantages a product or a service enjoys over its competitors. In the context of iPhones, the product has a great competitive edge on its competitors. Firstly, when the product was launched, the iPods (another entertainment product by Apple Inc) had already captured the market. Hence, when Apple combined all those features into a phone, the product itself developed a competitive edge and became unique. Moreover, Apple provided the option to the users to install applications of their own choice. This option was never provided before in any phone, hence this also made the iPhone a unique product. Besides this, the sleek design and the touch interface also made apple acquire a competitive edge in the market. iPhone faced its biggest competition with well established brands in the communication market such as Motorolla and Nokia. Both these companies have launched their products in competition to the iPhone introducing almost the same features.
Facebook, in order to get a competitive advantage, targeted the service only for college students initially. They allowed college students within a network to interact with each other. This created their demand amongst the social networking websites. Besides, Facebook also allowed users to use applications of their choice. When Facebook entered the social networking market, it faced its greatest competition from Myspace and Orkut. Both these websites had