In a rapidly globalizing market environment where corporate alliances cross boundaries, organizations increasingly have to interact, manage, negotiate and compromise with people from different cultures. If ignored or mismanaged, cultural differences can lead to great frustration and ineffectiveness by uselessness of competitive advantages.
Competitive advantage from a marketing perspective is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market. To have it you must create an edge over your competitors. It occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can be diverse including skilled personnel human resources and especially peoples from different background with cultural differences. It brings some difficulties but the results demonstrated that cultural diversity does in fact add value and, within the proper context, contributes to firm competitive advantage.
Unfortunately most companies do not think about cultural differences as a source of competitive advantage but in the aggressive business world, especially in today’s economy, every advantage counts to establish your business in the top of your industry.
Summarizing my view points, competitive advantage is a key determinant of superior performance and from a multicultural marketing perspective; cultural differences into your company must be perceived as an asset.