Competitive Advantage Is the Tool That Will Keep You Ahead If You Use It Correctly!
Do you know what your company does best? Do you know what sets your company above its competitors? Could your company do even better than all the other companies in your chosen industry? Let’s not forget to ask, do you know what your company doesn’t do best, as well?
Answering these simple yet challenging questions prompts a business owner to look intensely at their business to gain insight into its purpose and mission and how well it is achieving this said mission. It is best to answer them with brutal honesty because at the end of the day, cheating the answers is cheating yourself and your business. This is all about competitive advantage.
What Is Competitive Advantage?
Competitive advantage is your company’s set of skills and resources that work to enforce strategies that competing companies cannot enforce as effectively. It is crucial to understand your own company’s competitive advantage because this is the reason that your company is leading in business.
Your competitive advantage is what brings customers to the door to buy your product or use your service. The most successful companies are those that choose to be unique and offer something that stands out in the areas that they excel at. They then focus their energies into these areas to flourish.
Staying Ahead of the Competition
Identifying your competitive advantage is the first step. Next, you have to know that it isn’t enough to have an advantage over competing businesses simply. For your business to be the best, it has to be able to weather the economic storms to stay ahead of the competition. Being able to combat the volatile market as well as unpredictability, is critical.
So, your competitive advantage has to be something you can sustain, something that will endure the passing of time and all the change that comes with it. This is because most advantages of today will be duplicated tomorrow, as a manner of speaking. To put this into perspective, about 70% of today’s new products can be duplicated in a single year. About 60% to 90% of process improvement can also eventually wind up in the laps of competitors. It’s a dog-eat-dog world.
Don’t Be a Fool
If you are banking your company’s success on the incompetence of your competitors, you are treading dangerous ground. It is inadvisable to believe that your business offers a product or service that is better than your competitors today. If that is what gives your company a competitive advantage over them in the future, rethink your strategy. You have to revisit the purpose of your company.
While choosing your competitive advantage, keep revisiting it and working on it, developing it to become better all the time. Having confidence in your product or service is one thing, but being naïve and foolish is another. Depending on the inadequacies of your rival to help you stand out is not a good way of business and will not work for very long, if at all.
Testing Your Company’s Competitive Advantage
You will know that you have identified and developed a sustainable competitive advantage if your customers consistently see a difference between your company and its rival. The difference must be obvious, and it must also influence their purchasing preferences. If the customers are always coming back to your company instead of using a competing company, you need to know why and what is causing this to occur.
This way, you can work on it and always keep it up to standard. The competitive advantage is sustainable if it is difficult to imitate. The competitive advantage must also be something that you can continuously develop and work on. Working on improving it will help you maintain a competitive edge.
The success of your company depends on its competitive advantage and on whether it is a sustainable one or not. By placing your concentration and efforts into your company’s competitive advantage, you can always stay ahead of the competition.
Being one step ahead of the rivals in the industry and keeping it that way is essential. Should you fall behind, it means that your competitors will be getting customers instead. This is why it is essential to give a competitive advantage as much attention as possible.
More in Business & Investments
How You’re Contributing Up to 90% of Man-Made Pollution in the Oceans
According to new studies, there is an alarming number of synthetic fibers from fabrics making their way to the stomachs of...July 17, 2020
Three of the Richest and Most Popular Hollywood Stars
We all look up to the Hollywood actors, envy their lifestyle, and are in awe of all their comforts. At some...July 16, 2020
This Flexible Budget Method Could Save Your Finances
Financial planning is crucial. We are continually looking for ways to make money, save it, and spend it. That’s not just...July 15, 2020
Here Is What You’re Missing Out On Regarding Your Tax Breaks!
When tax season rolls around, everyone begins organizing their finances and digging around for whatever tax deductions they may be applicable...July 14, 2020
To Buy or To Rent as a Retiree — That Is The Question
So, you’ve finally hung up your boots, and now, you have a few more big decisions to make before you can...July 13, 2020
Consider Using Time Tracking Software In Your Business
Businesses use time tracking software to maintain accurate records of the length of time it takes for workplace activities to be...July 10, 2020
Fun Jobs You Can Do from Home To Earn Money and Fame
Do people feel clueless whenever they think about leaving their day jobs? Would you like to start working as an independent? People do not always...July 9, 2020
Leonardo da Vinci’s “Codex Leicester” and Four of the Most Expensive Books in the World
As eloquently stated by horror fiction writer Stephen King, “Books are a uniquely portable magic.” Readers can attest to the fact that this...July 8, 2020
These Are the Money Habits Holding You Back From Financial Freedom
Unless you’re a celebrity or a lottery winner, you have a limited amount of money to spend every month. We all...July 7, 2020