Chapter 7, Problem 1RQ

Explanation of Solution

Competitive advantage:

• It is a condition or circumstance that puts a company in a superior or favourable business position.
• Competitive advantage is a means of providing a product or service that is more superior than the competition.
• Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, intellectual property, the distribution network and customer service.

Changes in IT (Information Technology) industry:

• Integrating IT systems in a business was a competitive advantage in the past. Whereas today, it is a necessity to business and critical in competitive industries.
• As the industries have become more competitive, IT has offered ways to mitigate costs, improve products, and increase overall consumer support.