10 + 6 Business Strategies for Competitive Advantage

 

 In my earlier post, we have discussed in detail the competitive advantage, we have discussed the definition, types, and how to identify the competitive advantage of your business. All business managers know that gaining a competitive advantage is not the only destination. Businesses have to make sure that their competitive advantage should not be replicate and imitate easily.

Core Competence

The question is not only to define and gain the competitive advantage but how to maintain it for a long time and turn it into a sustainable competitive advantage. Business managers drive the strategies in with accordance the resources and capabilities of the business to gain a competitive advantage. If these strategies continue to be successful for a long period, the competitive advantage can become a sustainable completive advantage. And if they take necessary and regular actions to further strengthen the sustainable competitive advantage, it will become difficult, if not impossible, for other businesses to compete at that level. A long-term sustainable completive advantage, which is difficult to replicate or imitate, will become the core competence of your business. The intrinsic success for a business is to achieve its core competence.

Major Examples of Core Competence are

A good customer service, Product Management & Development Skills, Expertise Knowledge of Industry, Relevant Database, Customize Offerings, Wide distribution network, Efficient logistic system, Effective marketing strategies

 

 

Business strategies for Competitive Advantage

Nowadays the market has become very competitive. In this pandemic era, companies downsized their employees, and many people around the world start small businesses. Emerging technologies enable them to offer products or services with more competitive values. So the big challenge for business managers is to resist me-too businesses with a sustainable competitive advantage. Here are some business strategies for competitive advantage

Strategy 1, be price competitive

It is also known as cost leadership strategy; in this strategy, your target is to offer a comparatively low price. But if you do this by cutting down your margins then it will hurt your business growth. So you need to be efficient in your procurement, production, and management so you can reduce your overall business expenses to offer a lower price.

Strategy 2, differentiate your offer

In this strategy you plan to offer some things differently, changed, or extra in the same price your competitors charge. Or you may offer good quality or extra features at a premium price.

Strategy 3, expertise in your niche

Some businesses focus on a particular segment rather than serving the whole market. Most small businesses adopt this strategy to compete with large companies. The competitive margins are very low in a segment rather than the whole market. They can easily customize their offer exactly with the market trends, demographics, and needs of that particular niche. Remember the king of a small niche is better than a pawn of a large crowd.

Strategy 4, operational leader

Some businesses do more efficiently what they do than others, and this efficiency becomes their competitive advantage. The businesses with comparatively fewer resources and capital adopt this strategy.

Strategy 5, innovation is edge

Innovation is no doubt the future of business; businesses can have a strong sustainable competitive advantage with the innovation of new demanding products and services. You can also compete with other businesses by innovating new fast and efficient ways of doing business.

Strategy 6, adaptability

Change is only constant in this universe. If your business can change its ways of doing business with the unpredictable change in markets, it will compete with its rivals so efficiently. Nowadays most businesses adopt digital and online ways of doing their operations.

Strategy 7, technology winner

Using technology can reframe your business. Companies focus on the latest technological advancement and can become a leader in a particular market segment.

Strategy 8, information is power

The information is critical for strategic decisions and operational excellence. With in-time and correct information, managers can make the right decisions at the right time. Information also helps the businesses in predictive analysis, which leads the business ahead in the market.

Strategy 9, know your customer

Your market activities can only generate good results if you know who your customers are? And why do the customers buy your product? Your competitive advantage is all about your perception of your ideal customers. Firms with extensive knowledge of their customers, their demographics, psychographics, and preferences can lead in the market. This strategy also leads to better customer loyalty.

Strategy 10, Pioneers are ahead

You always have a competitive advantage over all other businesses to launch a product or enter a market before others, in the same industry with the same product or service. It doesn't matter how well your competitors perform their business. But the competitive advantage of being a first-mover can't be imitated by anyone.

Bonus Strategies

Strategy 10+1, proprietary rights

Some businesses have patents of their products, so none can replicate or imitate their products. Some firms have a competitive advantage with exclusive rights of some products i.e sole distribution.

 

Strategy 10+2, compete against yourself

Competitive advantage is no doubt performance excellence. To sustain the competitive advantage of your business, it is necessary to challenge your achievements. These achievements may be a cost leader, quality leader, etc.

Strategy 10+3, portfolio advantage

There are major three types of competitive advantage, comparative, differential, and focus or niche. A good strategy is to base your competitive advantage on all three types. In this way, you can have a more distinct and difficult to imitate competitive advantage.

Strategy 10 + 4, Brand Power

Customers always affiliate themselves with brands and prefer the brand over competitors. It may take huge investments and a long time to built a brand. But brand loyalty is an invaluable competitive advantage. It is very difficult to compete with your customer's brand loyalty for your competitors.

Strategy 10 + 5, Long Term Strategic Assets

Having long-term business contracts, Trademarks, Domain Names, CopyRights all are long-term strategic assets. These assets create entry barriers for your competitors to approach your market segments. Businesses mostly deal in B2B market have these types of competitive advantages.

Strategy 10 + 6, Product Line

Some businesses market groups of related products under a single brand name. They expand their offerings by adding features and new versions to existing product lines. They took the advantage of customer behavior to purchase from already familiar brands.

 

 

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