how comparative advantage is relevant in today’s economy
A large number of organizations in the current economy are still using comparative advantage. The ability to understand comparative advantage is a fundamental concept that helps companies to formulate an effective strategy. Therefore, comparative advantages are those principles and set of qualities that will help an organization to leverage the level of competition in the economy. The paper encapsulates how comparative advantage is relevant in today’s economy together with suitable examples.
Comparative advantage is essential for the organization. The concepts most of the time, focus on inducing critical aspects that will boost the profits as well as performance. The ability to provide quality products as well as services facilitates the element of comparative advantage. Besides, the use of distinct branding and the ability to invest in the marketing strategy supports comparative advantages.
Therefore, some of the organization with comparative advantages include; the TSLA Company has a comparative advantage. The organization is well known for the luxury vehicles and use of high technology when designing their brands. Currently, the company has no direct competitors available. Most of its brands are unique, and this has positioned the organization in a better place to enjoy a comparative advantage.
Besides, an organization such as Apple are still on the frontline enjoying the comparative advantage in the market. The company has been using intuitive designs together with strong brands that make it unique, thus setting it apart from other companies. It is also using innovative designs, and their competitors are releasing those products identical to the one designed by Apple.
Therefore, from the two examples, it is evident that comparative advantage is still in the economy. The two companies are using quality products, thus targeting and maintaining a large number of customers. Besides, the companies have a high volume of capital, thus making them easy to research and invent new designs different from their competitors.