Market mapping involves making a map of the market using key features that identify different products or firms. This helps to identify close rivals as well as any possible gaps in the market. However, the process is very subjective and gaps in the market may exist due to lack of demand.
A competitive advantage is anything which allows a business to stand out from its rivals, which competitors may find it difficult to replicate
This is most commonly achieved through:
Low cost - using economies of scale or high capacity utilisation to keep costs low and allow lower prices for customers
Product differentiation - standing out with high quality, good customer service or strong brand image, giving the business a clear USP
Adding Value is the process of increasing the worth of resources by modifying them. Value Added can be calculated by sales revenue - cost of bought in materials/components/services. Methods of adding value include having a clear USP, celebrity product endorsements and strong branding.
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