"The ability to create an advantage for the buyer is dependent on a seller’s competitive strength. This strength is reflected in its ability to offer better exchange ratios.
At equal prices, a seller with a cost advantage will gain greater profits than its competitors. At lower prices, the seller will increase its market share and strengthen its cost advantage, creating the basis for higher profits in later periods. A seller that provides its buyers with a greater net benefit is valued more highly by them; it strengthens its reputation, and buyers satisfied with its performance will become repeat customers. These are the conditions for profits being greater than competitors’ and for increased market share.
Profits that are the outcome of an advantageous position can be used by the seller as additional investments that competitors can only finance from other sources. The effects are as follows: a competitive advantage facilitates investment and thereby it helps to protect existing advantages and/or create new ones. Hence, it is vital for every competitor to create, find, or extend its competitively advantageous position. It is the very nature of competition that success or failure depends on the firm’s competitive position and every action has to be analyzed in terms of its effects on this position—how it improves or degrades it and how it utilizes it."Lembram-se dos economistas da Junqueira? Julgo que eles ainda pensam com as redes neurais que foram criadas na sua mente quando aprenderam as regras de funcionamento do Normalistão, afinal o mundo onde nasceram. Para eles só existem duas posições: vantagem de custo ou desvantagem de custo.