Also classified as the competitive advantage.
Not just in the world of business but also in a personal or professional endeavor, having the competitive edge is normally what separates the men from the boys.
Getting the competitive edge requires you doing what no one else is doing. Rather doing something different.
In the world of business, it can be baffling every day trying to keep up with your competitors always stealing your customers, and then there is nothing you can do about it. Let me restate there is something you can do about it. And in this post, i will give you strategies you can employ to obtain a competitive edge.
Ask the question, what can my business do differently to our advantage?
Here are some strategies to identify and improve the competitive edge of your business.
1) Cost Competition
Are you currently offering the best price in your marketplace? Are you able to beat your competitors by providing a better price to your customers? This is where cost competition comes in. You will need to at all times be offering your customers the best price available within your marketplace, which means you will need to understand the marketplace even better. Learning your competitors at this stage plays a vital role in using the cost strategy for obtaining the competitive edge. Knowing their numbers, their prices, their suppliers, their quality & standards can be key intel for taking the lead. You will likewise need to better understand your customers, what are their expectations of your business, their budget, how much are they willing to spend each time on your products or services, what motivates their buying habits, their geographics. In addition, at this stage, you should have already had an understanding of the governmental regulations surrounding the marketplace, your industry, and your business. All this and more information you can use to factor in your pricing.
2) By using the differentiation approach.
By using this approach you will try to maintain a separate identity from the pack. Identifying whats makes you stand out and how can this be used to the benefit of the team. As such you will need to ensure branding is a primary element in your inventory and here is why this is generally where the magic happens. At this stage, the brand creates an entire image based on its story in the mind of your customers, clients, and other loyal stakeholders. This image/story will effectuate the buying power of your customers based on your influence. Hence will in most cases directly contribute to the profitability of the business. Setting yourself apart from your competitor likewise allows you to build your brand’s own loyal community.
Positioning your business in a different light from your competitors makes you seem more unique and interesting hence will attract new customers on a frequent basis.
3) Use of innovation
By being innovative in the marketplace goes without saying, you are fulfilling one of the core functional requirements of your business and your customers will love you for it, refer to one of my previous posts Core functions of a business. At all times try to bring new life to new or existing products will not only dictate your dominance in the marketplace but also commands the attention of others as your services are not available everywhere or in most places. Innovation makes your business unique with each attempt at creating a unique product or service aimed at solving a customer problem in a more effective and efficient manner. And that’s only the beginning because by the time your not so very innovative competitors catch on, you will have been way ahead of the game already and building deeper relationships with their customers making them your customers. The opportunities are endless your competitors may even approach you for help with innovating their products or business. Setting your business apart using innovation can be a real no-brainer sometimes but it is totally worth the risk in the end.
4) Collaborate with other businesses
Speaking of other brands approaching your business can go both ways. You can identify another business to approach and collaborate with them on developing a new product or innovating existing ones. Collaboration opens your business to new audiences, new knowledge, new resources, new opportunities and shines a new light on your business, one that customers love. This will help improve your brand image, identity, and culture also cement your business as a go-to expert in the marketplace. Also allowing members of your team to collaborate on new ideas and initiatives can help your business to land new trending buzz or exposure to new concepts and markets.
5) Market Positioning
This option requires you to identify the ultimate strength of your team and use that as your unique selling proposition (USP). Doing this is likewise a pretty easy alternative. At this stage you will evaluate your team and see what skillsets and functionalities are most prominent, this will be used at the advantage of the team to outweigh your competitors who aren’t discovered or capitalized on their strengths. Around the stages of identifying this strength can be a headache for most entrepreneurs especially younger ones, this is likewise usually a pretty simple process. You will do an evaluation or analysis of the business to find out what strong points your business has that your competitors don’t. Once this strength is identified ensure you make it a part of your company’s culture and your everyday communication with team members. Letting your customers know is also a key requirement of using this strategy for leveraging the competition. This strength must likewise give value to your customers and clients.
Conclusion
Identifying, establishing, and maintaining the competitive edge in your marketplace place can be very beneficial for your business and brand identity. Using a combination of any of the above-outlined strategies can be very effective for your business growth. Firstly analyze your business and team to find the common strength and use them to your team’s advantage. Remember the team with the best strategy wins.