7 STRATEGIES FOR CREATING A COMPETITIVE ADVANTAGE
Competition is what encourages development and makes you move forward. In business, it is able to develop or, conversely, at some point destroy the organization. Competitive advantage is what makes the products or services of the organization superior to all other customer options.
For example, the retailer that offers the lowest prices has a competitive advantage over other retailers whose prices are higher. The low prices can make this retailer's products more attractive than other, more expensive options.
How to gain a competitive advantage to ensure the growth of the company? Below we describe 7 strategies that are designed to help you find it and become competitive in the market.
Branding is the most widely used method of differentiating one company from another. Because of this, names like IKEA or Nike automatically acquire a status that is distinct from other companies. The task of managers is to find a distinctive feature of their business that will help them stand out from the crowd. They then use their advantage to increase visibility and value among competitors in the market.
“The best way to predict the future is to invent it.” - Alan Kay. An innovation strategy helps companies engage their customers, outperform competitors, and even create complementary products or services. But it's worth noting that an innovation strategy requires you to invest money in building research and innovation centers and creating internal programs that will help you reach your goal.
High level of adaptability.
Given that the market, the economy and other factors are constantly in an unstable and unpredictable environment, companies that can adapt have a clear advantage. Typically, these are small companies, but even Apple successfully copes with the waves of change. Leaders can develop adaptability by being open to change and new experiments.
Knowing who your company sells products or services to is vital. Who is the target audience for your business? Where are these potential customers? What problems do they face? And most importantly, how can you meet their needs? All these questions should have the most detailed and detailed answers. An outstanding company knows exactly who it is dealing with. Take the time to do your research and choose the right direction for your business.
Investment in team development.
Competitive strong companies have qualified specialists. This is why qualifications and training are so important. Some companies offer discounts on training courses and various other activities. Encourage your employees to get better. If you have talented and inventive people in your team, the company also benefits from this!
Strong organizational culture.
Some companies are more known for their culture than for the products or services they provide. Continuous investment in building culture can bring several business benefits. Customers want to buy from companies that treat their employees well. At the same time, these companies can attract the best talent. And this, in turn, provides excellent customer service to the company. A strong organizational culture leads to positive growth and the development of competitive advantages.
Cooperation with strategic partners.
Any business that wants to increase its competitiveness must partner with the right players in the market, whether it be a supplier of goods, materials for production, or technological solutions. Good alliances bring great results! Partnerships have evolved from a simple contractual contingency relationship to a more empowering relationship.
Finding and improving competitive advantage is a never-ending process, and to maintain it over a long period, you need to constantly find new strategies that complement your business model and help you outperform your competitors.