Do you have a Competitive Advantage?
When starting a business and providing a product/service offering one of the most important questions to ask yourself is, what makes my business different? A competitive advantage sets you apart from your competition and gives consumers a reason to buy from you. Once you have established what your competitive advantages are the next step is to plan your marketing and to make sure it’s part of your communication strategy. It can be challenging to establish how to differentiate yourself in a saturated environment that is why we put together our top three options in which your business can create a competitive advantage.
You can create a competitive advantage through your product offering. Most businesses try to set themselves apart from the competition through offering a quality product. Woolworths is a great example of having a competitive advantage with their food as they differentiate themselves in the market by offering quality food that lasts.
If customers receive bad service you can rest assured that they wont be returning anytime soon to your business. Service is a great way to create a competitive advantage within your business. Mcdonald’s is a prime example within the Franchise industry. When Mcdonald’s started they made sure that their burgers and fries were produced at a rapid rate reducing the amount of time customers needed to wait. They made sure that every consumer received their food on time within minutes setting the bar high for the rest of their competitors within the food franchise industry.
When products/services become expensive consumers often try to seek out bargains. That is why your price can be an effective way to create a competitive advantage. Even though price is a great way to differentiate yourself it is important to still make sure your positioning is good as consumers can question your quality and reliability if you have the lowest price in the market.
Not only is it important to know how you will differentiate yourself, but equally important to make sure that your differences is communicated through your marketing strategy and tactics.