Competitive Advantage of Companies Through the Use of Internet

Gaining a competitive advantage over other competing firms in the marketplace is one business strategy which is challenging to achieve. However, the use of the internet provides an avenue for that, and it is actualized through Porter’s strategies. The strategies are cost leadership and differentiation. Both strategies shall be discussed in detail in the paragraphs that follow. Cost Leadership Cost leadership entails “using the lowest possible production costs in manufacturing a product. Companies achieve this by identifying a viable niche in the economy and analyzing customers’ needs and wants. They then develop products to meet such needs. In this strategy, the internet is used in getting information, particularly about customer wants from reviews of similar products. They take the bad reviews as opportunities to develop better products of better quality.