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DU Oral Examination Imad Abu Zeana
1.
© 2020 CEIPI,
Strasbourg, Prof. Dr. Alexander J. Wurzer Page 1 of 13 IP Strategy Development Competitive advantage Theory What is Competitive Advantage? In a simple definition; it refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales with superior margins compared to its market rivals. Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service. Competitive advantages allow a company to achieve superior margins compared to its competition, and to generate value for the company and its shareholders. A competitive advantage is simply a factor that distinguishes a business from others and makes customers more likely to choose its products over the competition. A competitive advantage allows the company can create value for its customers which other competitors are not provide in their products and services portfolios. This may be lower costs, faster service, better customer service, a more convenient location, higher quality, or other factors. Competitive analysis Types of competitive advantage; Developing objectives for strategies; General model of competitive advantages; How to achieved the competitive advantages? Topics
2.
© 2020 CEIPI,
Strasbourg, Prof. Dr. Alexander J. Wurzer Page 2 of 13 IP Strategy Development Competitive advantage Industry Practice Example: What is Competitive Advantage? The market example is Apple Inc. - Protecting Design and User Experience. As Apple Inc. is known for its innovative products, including the iPhone, iPad, and MacBook. One of Apple's key competitive advantages is its ability to create products with a unique design and user experience. This Example focuses on how Apple strategically leveraged IP to maintain a competitive edge. Application of Competitive Advantage: Apple's IP strategy has enabled the company to maintain a competitive advantage in several ways: •Product Differentiation By patenting its unique designs and innovative features, Apple can differentiate its products from competitors. This differentiation attracts consumers who value design and user experience, contributing to Apple's brand loyalty and market share. •Legal Defense When competitors attempt to imitate Apple's products, Apple can take legal action to protect its intellectual property. High-profile legal battles, such as the one against Samsung for patent infringement, have demonstrated Apple's commitment to defending its competitive advantage. •Market Dominance The protection of its IP has allowed Apple to maintain a dominant position in the premium smartphone and tablet markets. This dominance translates into higher profit margins and significant market share. •Innovation Encouragement: Knowing that their IP is well-protected, Apple's engineers and designers are encouraged to continue innovating without fear of immediate replication by competitors. This ongoing innovation cycle sustains their competitive advantage.