Many successful businesses follow a trend that has allowed them to prosper in the competitive market. This trend refers to businesses that have created and leveraged a unique product or service that is marginally different from its competitors.
Competitive advantage is a type of advantage that refers to a specific unique product or service that is superior in terms of quality when it is compared to its competitors. This advantage is one of the best advantages a company can obtain in its lifetime.
Competitive advantage is one of the most important advantages that will factor in and lead to a successful business venture. Companies with unique products or services will create a competitive advantage that will act as a safeguard against the competition. If you want to learn more about competitive advantages, you may read any of the articles named Competitive Advantage SWOT Analysis Template, Competitive Advantage Executive Summary Template, and Competitive Advantage Accenture Strategy Templates.
Begin by researching the target market and the local and international competition. This will help provide context and an outline of the similar product and services available in the market and will generate data points you can tackle to create a unique product or service.
Well-made use of the scientific method allows one to create a product that is unique in the market and may even pave the way for a newer innovation. This means that if one wants a unique product, one must also research various methods and ways to create a unique product.
It is very hard to ideate and conceptualize a unique product that will shake up the market by yourself. If you have a team, you can brainstorm different ideas and products that you can use in your business to create a competitive advantage.
The unique product will not sell itself without proper marketing and visual traffic. This means that you or your team must conduct marketing strategies to market your unique product to a specific target audience to ensure the generation and enabling of competitive advantage.
Porter’s generic competitive strategy is a generic technique a company uses to obtain a competitive advantage. The general use of this strategy allows companies and businesses of various types to use this strategic planning without fail. This technique uses four quadrants to align and strategize the various ways the company can reduce cost and improve differentiation based on targets. This strategy uses three parts, all of which are integrated into the strategy. Cost leadership is a part of Porter’s generic competitive strategy that lets the company use the strategy to project or show that they are the lowest cost producer of a specific product, commodity, or service in the industry they are in, which is denoted in the first quadrant of Porter’s generic competitive strategies. Differentiation indicates the company or business’ ability to set itself apart from the competition, usually through the selling of a unique and quality commodity, product, or service. Focus is the amount of effort the company or business puts into either achieving cost leadership or differentiation.
Marketing strategies, whether they be brand, e-commerce, or the like, can improve the company and business’ position in the marketplace and create a competitive advantage. This is because strategies are focused objectives and actions that will try to achieve a certain outcome for the people using and deploying the strategy. For example, a digital marketing strategy can improve the digital storefront and visibility of the business by trying to make themselves have a unique and purposeful digital presence and footprint. All of which will improve the competitive advantage of the business using or leveraging the strategy.
Comparative advantage is a type of advantage that refers to a business’ advantage created by an efficient and cost-effective product or service when compared to businesses of the like. A well-researched product or service with great innovations can create a comparative advantage in the competitive landscape. Competitive advantage, on the other hand, is the advantage created by a specific business or company with a much superior product or service. The superiority of the product creates a unique distinction from its competitors and can even be improved by proper marketing of said product. The main difference between both types of advantages is whether or not the product can set itself apart from the competition (Competitive advantage) or is a product that one can efficiently manufacture in a shorter period (Comparative advantage).
Comparative advantage refers to an advantage a company can gain from a product that is generally superior to the competition’s products. This advantage is generally very hard to lose and is something that successful businesses and companies should try and achieve.