A tire company's products are more expensive than those offered by its competitors, but are still sought after by customers since they are more durable and perform better under harsh conditions. The tire company, in this case, has achieved competitive advantage through Superior quality.
Step-by-step explanation:
Quality refers to the level of satisfaction or the requirements of the consumers. It is very essential for an organisational in maintaining a good quality product as it affects the profitability to a greater extent. When there is a poor quality of product given by the company to the consumers then they will lose the potential buyers and also the loyal customers.
When the quality of the product is good then it will move at higher rate even when the cost is high because it justifies the pay the consumers give for it. These companies can also achieve competitive advantage and survive in a competitive environment. In the given example, the price that the tire company offers is higher that the competitors but the tire works better than others in a harsh condition. Thus, this company has achieved competitive advantage through superior quality of the tires.