Competitive advantage is very tangible and effective in the current competitive environment. The meaning of this concept is to create a distinctive feature and a special characteristic in products and services compared to other trades in order to attract more customers. That is, a special feature in our products or the way we provide our services should encourage customers to buy and use our products and put our competitors on the next step.
Importance of Competitive Advantage
It can be said that competitive advantage is more important for new and emerging businesses. Because before their activity, there have been similar businesses that have regular customers. These businesses have been established among people for years, or so-called, have strengthened their foothold.
Therefore, in order to win in the field of competition with them, we must develop a special feature and an advantage that will turn their actual customers into our permanent and actual customers.
In general, we will understand the importance of competitive advantage in facing the same business environment. There may not be much maneuverability and innovative activities in similar businesses due to the political, social and cultural conditions prevailing in the society. Therefore, in this situation, it is better to think about creating a competitive advantage compared to our competitors by relying on the existing features and strengthening them.
Creating a Competitive Advantage
Accepting this fact that in the current competitive environment, surpassing the competitors is a little difficult and requires a lot of efforts, it is not far from the expectation. But in the same space, with focus and precision in some dimensions, you can steal the ball of superiority from your competitors and surpass them. In order to create a competitive advantage, it is appropriate to pay attention to 3 important factors in business matters:
Examining the performance of competitors and their products in the form of competitive analysis activities can help us in creating competitive advantages. By carefully observing their activities, it will be possible to access their strengths and weaknesses, the processes of producing products and providing services, marketing and other useful information that will help us in providing better services and products.
2. Customer Analysis
Customer analysis means focusing on customer wants and needs. It is possible that we and our competitors both operate in the field of producing a type of product or providing a type of service. But the use of our products will bring more significant benefits to the customer and this will attract the customer to us. Therefore, we must always prioritize the customer and his interest.
3. Acquiring Knowledge
Acquiring knowledge in the field of marketing, new technologies and even learning the correct ways of interacting with customers makes it possible for our business to take the lead in the field of a specific business and to always be the first choice of target customers.
Competitive Advantage Strategies
1. Price Reduction Strategy
In most cases, the price of the products is the first word for the customer in the selection process. Keeping the price low can be considered a competitive advantage. Of course, businesses usually do not consider this option as an advantage, and on the other hand, in some cases, quality is of primary importance to customers.
2. Innovative Actions
Including an innovative and new idea in offering some similar products can end the game in our favor. People get tired of offering repetitive and sometimes old products and look for products with new and attractive ideas. This strategy can draw attention to the products and services provided by us.
3. Compliance Strategy
Businesses that continuously adapt to the changes in the business environment and advance their product production process in the same direction will be able to respond to customer needs in accordance with the changes better than other competitors.
Up To Sum
Competitive advantage is one of the most important elements in marketing. Its creation requires some strategies and the use of analysis processes, especially competitive analysis.