Competitive Advantage Strategies The business environment is very competitive especially in the modern world where technology has advanced and increased dynamism in the environment. Due to these changes, many organizations operating in different industries are seeking to establish themselves through use of various strategies. One of the common strategies is establishment of a competitive advantage. A competitive advantage is qualities that characterize a given organization that makes it outstanding from the rest of the competitors in the industry. Total Quality management is one of the strategies used by firms to create a competitive advantage through development of quality products that fit directly into consumer needs. Despite its common use by many organizations, other strategies could be used by organizations to establish a competitive advantage. Cost Leadership Companies that have ability and capacity to produce goods use this generic strategy and services at costs that are lower than those of their competitors are and therefore earn more profit in selling high product quantities. As mentioned by Campbell et al (2002, p. 178), for a company to gain cost leadership, there has to be costs control and efficiencies. The company should seek to gain a unique access to lower cost materials. Low cost in production could be achieved through vertical integration decisions and optimal outsourcing. As long as cost of production is low, a company can offer products at lower prices and maximize sales. Companies that use cost leadership strategy take advantage of the economies of scale whereby the company produces large amount to enhance its competition in the market. A good example of a company that has applied this strategy includes Wal-Mart. This is one of the largest retailers across the world. Wratshko (2009, p. 53) argued that low cost strategy is central to the production and delivery of quality and competitive products at Wal-Mart Company. The company has for years translated its low cost advantage into a price advantage, its customers enjoy low costs, and this has largely improved the company’s market share. The enlarged market share in turn increases the company’s opportunity to enjoy economies of scale with ruthless cost reductions. Wal-Mart is known as a low price supplier of variety of goods. Wal-Mart compares its every activity with those of its competitors along the value chain and is committed to surpass the competitors through price reduction. The company has remained innovative; this helps in improving processes and developing new products at low costs. One of the main drivers of low cost strategy at Wal-Mart is its supplier relationships; the company maintains in-bound logistics and supplies. Market Segmentation According to Campbell et al (2002, p. 180), a focus strategy focuses on a given market segment in which it applies cost leadership or differentiation strategy. Use of focus strategy helps in gaining customers’ satisfaction and loyalty. Coca Cola Company is well known of using focus strategy to enter new markets as the strategy was successfully used in China. After establishing the market, the company uses differentiation strategy to provide unique products in the market. Most companies