Determining whether a company is positioned in today’s competitive markets will depend on its
competitive advantages. Most marketing strategies used by businesses are based on these advantages,
since they are what will differentiate them from the rest.
It is no secret that competition to stand out in the market has become the main headache for
companies today.
This is why the ability to innovate and be creative are skills required by most companies when
recruiting new staff.
There is no other explanation for this than the constant search to offer the target audience something
that no other company can offer.
This “something” is known as a competitive advantage, and in this article we will explain everything
you need to know about it and how you could develop your own. Go ahead!
What is a competitive advantage?
Competitive advantage is a concept established philippines telegram data in 1980 by Michael Porter. It refers to a unique and sustainable characteristic over time that no other company competing in the same market possesses . This advantage, being unique, gives it a favorable positioning.
It is important to emphasize that one of the bases for the structuring and development of a marketing strategy is competitive advantages.
Characteristics of a competitive advantage
For an advantage to be competitive it must have certain characteristics, these are:
It must be unique
This feature is related to the fact that there do you want to raise your website or blog in search results may not be another company that has something similar to what your organization offers.
This means that when developing your advantage you must be innovative and creative , always seeking to ensure that your company offers something that the competition does not have.
It can’t be easy to imitate
When developing your advantage, you must b2c reviews ensure that it cannot be imitated in the short term.
Generally, the competition will look for a way to copy your competitive advantage, so if you make it easy for them, it will be copied quickly and will cease to be an advantage.
It must be sustainable over time
Looking to maintain your advantage for a long time will make it truly competitive.
That is why it is very important to base it on a company strength when developing it . This will prevent the competition from imitating or surpassing it in a short time.
3 types of competitive advantages your company can have
Differentiating yourself from your competitors will be the goal to achieve when developing your competitive advantage. In order to achieve this easily, it is important that you know the types of competitive advantages that exist, these are:
- competitive advantage through cost leadership;
- differentiation and
- by focus.
1. Competitive advantage through cost leadership
This advantage consists of seeking the greatest possible savings in the production costs of your products or services without reducing their quality.
Obviously, this will make what you offer to consumers have lower prices. Something beneficial for your business, since there is a large group of consumers for whom one of the aspects that weighs most when making the purchase decision is the price .
2. Competitive advantage through differentiation
This type of competitive advantage refers to the fact that your product or service is innovative and of high quality. Therefore, it represents value for consumers in a broad sector of the market.
It is worth noting that in addition to having an innovative team in charge of producing your products , their production costs will be higher and therefore their price will also be higher.
But by being unique and of high quality for consumers, the acquisition of your products or services will not be an expense, on the contrary, they will see it as an investment.
3. Competitive advantage through focus
Unlike differentiation, the focus strategy is based on offering a product or service to a specific market segment and not to the market in general.
It is very important to clarify that this type of strategy is based on the same principles of quality standards and innovation as differentiation, except that, instead of covering a general market, it focuses on a specific sector of the same.