Business’s Competitive Advantage and their Types 2023 – Gomahamaya
There is no single organization in the market that does not pose competition. If any new business is established in a market, your competitor will be next to you. You won’t win such competition by just availing of offers. It would help if you also built a competitive edge for your newly launched product or service. Set up a fascinating existence for your product in the market that attracts the customer’s attention in a while. Such a glamorous edge you define for your product or service will be termed “Competitive Advantage.”
There is no success in business unless you do something unique to your product or service. In this article, we have strained to discuss every detail of Competitive Advantage. ‘How it takes account,’ ‘How you can layout your Sustainable Competitive Advantage,’ Competitive Advantage Definition and What are different kinds of Competitive Advantage? You will get to know all such answers right here.
Table of Content
- Competitive Advantage
- Types of Competitive Advantage
- Recognize Competitive Advantage for Your Business
Here we Discuss About what is a competitive advantage. The Competitive Advantage is the condition in the prevailing market when any new competitive edge product gets launched. In such a situation, every company possesses that their product is more beneficial as it contains premium quality and is cost-effective. Everyone is showing their product much better than their competitors in the competitive environment marketplace.
Competitive advantage brings outperform ability in the competitors so that it will take the benefit of extreme margins. This will also set up an expected value for the company and shareholders. The sustained competitive advantage completely depends on the uniqueness of the product or service that won’t be duplicated. And, it is the big plus point to the competing business over there. The choice of audience will ensure whose idea will top or flop. So how much you take care of the necessity of the public will increase the chance to grab the Competitive strategy Advantage.
We all know that advantage marketing is bombarded with variants of the same products containing similar values. Therefore, you must consider the great way to serve your product or service that leads to success.
Just consider Apple and Redmi both presenting a wide range of smartphones, but there is a difference in price and status. Similarly, Amazon, Flipkart, Myntra, and AJIO are well-known e-commerce shopping platforms. But have you ever thought, what makes them different from one another? Why will an uneven distribution of shares occur even if all of them are a part of the same market?
The reason behind such difference is Competitive Advantage, which evolved around competitors and set them apart while setting a special status. Next, we will discuss brand competition and various competitive advantage examples that are essential to follow to secure a reputed position among competitors and define competitive advantage.
Types of Competitive Advantage
1. Cost Leadership
Cost Leadership is a simple yet very useful Competitive Advantage that ensures its place with less price and high quality. Offering products or services at low range than your competitors without declining their quality will work greatly. Increasing the number of consumers with Focused Cost Leadership will increase your revenue more than ever, and such a cost leadership strategy conforms with decreasing costs and increasing sales.
If you hold the Cost Leadership Competitive Advantage, overall cost leadership requires a low product cost. The company must take control over wages and other operating expenses that make the product cost down. It is one of the best cost leadership strategy examples. In this way, Low Cost Leadership gains you the Competitive Advantage if you know about controlling costs without reducing the quality of products or services.
Differentiation strategy work upon quality, apart from Cost Leadership, which completely depends upon the low production cost. According to the Differentiation Competitive Advantage, you must stand out in your product differentiation among your competitors. Whether providing service or selling products, it must be innovative, unique, or luxurious.
A company only needs brand differentiation recognition from its competitors, and if those differences change, it will gain the Competitive Differentiation Advantage.
3. First Mover
First Mover’s strategy, describe itself by its name if any technology, product, or service launched in the marketplace will get recognition by First Mover. The Competitive First Mover Advantage of First Mover will gain a lot of name and fame as no other competitor is available. A flexible identity lets the company stretch its share in the market, however, it may. Any new idea will make you a cool player in the market if your idea serves well the necessity of the audience.
There should be a strong emphasis on ruling the market as a First Mover. The originality of the product or service will decide your place in the first mover marketing and whether it could be worth the credibility or not.
However, most of the time, it seems that the First Mover’s Company may take over by new followers. It’s known that if any business is unique and has a going success graph, there will be a lot of competitors arriving to take over such benefits with little early mover advantage strategy. And many times, it saw that such latecomers and followers would hold a high position in less time by creating a Competitive Advantage.
Recognize Competitive Advantage for Your Business
1. Deep Research of Opponents
Before starting any business, you must conduct deep market advantage research on such companies. Keep an eye on your competitor’s behaviour, assessing facts like who they are, how they target consumers, a competitive business strategy they follow, their position in the market, and more.
Such research will give you the concept to establish your business competition strategies with a suitable Competitive Advantage approach. Whether to follow Cost Leadership, sustainable advantage, differentiation, or First Mover to achieve the desired goals for the company.
2. Review Prices and Expenses
Just like the point mentioned above, it interconnects with this point too. Knowing the pricing adverse of the product or service in the market is essential, and you should ascertain their product pricing and revenue margin during your opponent’s research. After competitive factors, you have to specify your pricing benchmark for the individual product or service your buyers are accommodating.
Your company to play smart if it wants to create a Competitive Advantage in marketing from Cost Leadership. If you have something different to offer your audience, you can utilize the differentiation strategic Competitive Advantage. The choice is yours, but it is preferably essential to keep a review of production costs and expenses before deciding the exact price.
3. Connect Consumers
Track your customer’s behaviour to determine the reason for selecting your company’s product or competitive business service. Conduct survey’s on social media, connect via email or message and collect such data through it.
Knowing why your consumer selected you over your competitor will give you confidence and a differentiation advantage. Compliments from customers make your product or service more reliable and conceivable.
4. Float with Recognized Advantage
After assessing the entire facts diary, you can select your Competitive Advantage that will successfully administrate your business wisely. Once you pick a competition and strategy and apply it to your business, give yourself some faith and time to grow in that environment. Once it flows, it becomes more sustainable advantage management than your existing competitors.
As we already discussed Competitive Advantages above, if you want to rule the market, you must have to do something distinctive and competitive advantage over others. Present your product with various features that people seek in your competitor’s product. Provide top-in-class service to establish your prominent identity in the market.
Complete your research, carve your uniqueness, and reign the market by opting for the right Competitive Advantage strategy.