3. Above average returns- In order to earn above average returns, your business must have a competitive advantage over your rivals. In order to achieve an above average return, you must develop a competitive strategy. This means developing a strategy for how you are going to compete in the market place by cost-leadership means that you are the cheapest option every time or differentiation means that your product or service is different from others on offer which allows you to charge a premium price. To make a cost-leadership strategy work you would offer products of average quality for less than the average price. If you are the only one doing that, and you can actually produce at a lower cost, then you may have a competitive advantage and earn those above average returns. Example: making a product that is cheaper in terms of cost and manufacturing but just as good/better in terms of quality & sensory over your competitors
Strategic competitiveness is a type a strategy that certain firm can plan to achieve their organizational goals even though there are a lot of competitors around them. It can be achieved when a certain company or firm successfully come out with a special ideas or strategy that can allows the firm to create wealth to its organization when it is implemented or in other word, implementing value-creating strategy. Usually, in implementing strategic competitiveness, other companies are unable to duplicate or follow it. Some even feels that it is too costly to follow.