Competitive advantage refers to the factors that keep a company ahead of its competition. These factors can be some unique strategy in a company’s marketing system that keeps it ahead of other similar companies or the company’s brand image and reputation. In most cases, a company’s competitive advantage is what drives consumers to the company irrespective of the price of its product. As such, competitive advantage is the unique factor that differentiates a thriving company from a struggling one. Below are some of the factors that trigger a company competitive advantage
- The workforce
- The product
- Technological innovation
- Company’s brand and reputation
- Ability to come up with unique products
- Quality product at a cheaper price than most of its counterparts
As a business owner, identifying your company’s competitive advantage is an important step to creating a thriving business. Below are 3 basic ways to go about this
What is the unique benefit of your product?
One of the secrets of marketing is that buyers or customers do not buy your product just for buying sake. They are buying to fulfill one emotional need or the other. This emotional need is what your products can do for them. Your product’s real value is what interests your customers. When you identify this, creating a competitive advantage via your product would be an easy feat.
Determine your target audience
Who are the people that would buy from you? Who is your target audience? What are their needs and interests? Identifying your target audience and their needs guides you in creating products that speak directly to their needs.
Who are your competitors?
Who are your competitors? Why do customers patronize them? Beyond creating unique products that address your customers’ needs, it is important to identify your competition. Beyond identifying them, ensure you pay attention to their products. What is the thing that differentiates their products from yours and why do they remain on top of customers’ list. When you identify this, you would know what to do to create a product that beats the competition.
For instance, newspaper companies thought their competitors were their counterparts hence they each tried to exceed the other in the method of telling their news. It was not long before it dawned on them that the problem is not other newspaper companies, rather it is the internet. How do you fight a company that delivers news instantly at the fingertip of everyone who is interested? Today it is not wrong to say the committed newspaper customers are the elders who find it hard to read over the internet.
No doubt competitive advantage is an important factor in a company’s progress. This goes beyond creating a superb product but creating a unique product that addresses your customers’ needs.
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