S XYZ Co. Able to Identify and Exploit Sources of Competitive Dissertation

S XYZ Co. Able to Identify and Exploit Sources of Competitive Advantage to Sustain The Emerging Competition - Dissertation Example Other changes followed the implementation of the first Saudi Insurance company's services, which were evident in the increased awareness of the people in regards to insurance policies, as well as the substantial increased risk in accordance with the introduction of compulsory motor third party liability (BMI, 2011). Other changes included the legislation passed which made health insurance on expatriates and their families mandatory and the increase in oil prices had also been reflected on the citizens of the country's personal incomes in accordance with classes that includes travel insurance (Ansari, 2011). Other insurances include life and property, which was subsequently followed by the increase in house loans, the amplified boost of the insurance market, as reinforced by the registration of more than 15 new insurance companies, thus fortifying the competition within the market. The growth in competition led to enjoining new entrants in the industry, which was supported by the gove rnment's efforts to open the chance for foreign capital to investment in Saudi's insurance sector (Ansari, 2011). 1.1. The Significance of Competitive Advantage among business firms A firm is equipped with competitive advantage when it has the means to edge out rivals when vying for the favour of customers. In that regard, a firm is considered to possess competitive advantage by implementing strategies that produce value that are not simultaneously being implemented by any current or potential competitors (De Wit and Meyer, 2005). However, the defined subject of competitive advantage in financial service has a wide existence in the body of literature. The complexity and intangibility focusing on financial service products that include insurance limited the understanding of the average customer in regards to the features and benefits provided by such service. This then implies the complexity of identifying and achieving competitive edge (Barney, 1991). The study of competitive advant age in the field of insurance as an aspect of financial service imposes the process of collecting literature in the context of competitive advantage that is particular to financial service in order to deliberately construct a theoretical model of attributes or features against the perception of the subject of the study, which is the company management to be evaluated. For instance, Delvin (1997a) had made use of a detailed questionnaire, which he had distributed widely among marketing personnel. The context of the questionnaire delved on the strategy employed by relevant senior personnel in UK retail financial services. Delvin (1997a) investigated the factors which managers emphasise when attempting to formulate strategies to add value to service offerings and, hence, achieve competitive advantage in services markets. The study was able to conclude that the features and quality of the core service, inclusive of the price, image and reputation, functional service quality, support ele ments, and location and service recovery are the factors crucial in adding value to service offerings (Delvin, 1998). In comparison to the findings of Delvin's study, it would be noted that in a study conducted by Gronroos (2001) pertaining to service quality, the latter confirmed the importance of the functional quality on the basis of his perspective, as a very vital factor in order to maintain the gap between the expected service and the perceived service