Customer loyalty is a significant competitive advantage. After watching this video, you will be able to explain ways that you can increase the stickiness of your relationships with customers.
- For over 20 years, Microsoft has had an almost dominant … market share in office productivity software. … Part of the reason is that it's good software … and people like it. … However, it's hard to imagine … that other companies, for example, Google, Apple, … lack the capability or the capital needed … to develop as good or even better software. … So why has Microsoft continued to maintain … its massive competitive advantage? … A major part of the explanation lies in the fact … that customers' relationship with Microsoft … has become sticky. … Customers have learned how to use this software … and are unwilling to invest the time and effort … needed by competing applications. … They face high switching costs. … They also know that their family, friends, and colleagues … are all likely to be users of Microsoft Office. … Thus they feel confident that by using Office, … they can share documents without any problems. … In short, Office enjoys significant competitive advantage … based on high switching costs. …
Skill Level Intermediate
Q: This course was updated on 08/19/2015. What changed?
A: Due to member demand, we've added three movies to take you even further into competitive strategy: Competing through disruption, Managing complementors, and Understanding industry dynamics