Using the company report that you used for Activity 1.1, use your notes from reading chapter 7 of the recommended text to identify the competitive advantage of your selected organisation. How sustainable is the competitive advantage, what forces might erode its competitive advantage? You should post your answer to the discussion board and provide feedback to the postings of at least two other students.
Barclays competitive advantage
As a whole company, Barclays Bank identifies sustainability methods as a means of recognising and managing the economic, social, and environmental issues across the Group, and at the same time, contributing to the wellness of the society (Datamonitor.com, Barclays Bank report, 26 Feb 2010), this to give them an overall competitive advantage. As Barclays Bank PLC is a multinational company, so I have decided to focus in on their credit card, ‘Barclaycard’, arm of the company.
From there website they indicate that their priorities are to ‘build the best bank in the UK’ and ‘accelerate growth of global businesses’ (Annual Report, 2011)and there is exception for their credit card facilities.
In general, Barclaycard’s strategy has been to try a focus on being different. Differentiation has been defined by Porter(1998) as a sustainable advantages that allow it to provide buyers with something uniquely valuable to them. Carpenter (199) describes differentiation is a competitive advantage which identifies a valuable, relevant, but overlooked dimension of a product.
They have one concept of a card where customer pay by card and pay of the balance at the end of the month or pay interest on the remainder.
and (2002) proposed differentiation as business strategy that brings value to your product and to your customer. (2000) suggested the essence of differentiation is offering an option that the competition cannot or does not offer.
A successful differentiation strategy allows the business to provide a product/service bundle of...