Negosentro.com | 6 Ways to gain the competitive advantage in business | Have you ever stopped to wonder how some companies keep winning time and again in business? Even when facing fierce competition, these businesses have a competitive advantage that makes them most likely to succeed. The ability to out-think and outperform your competition is a fundamental requirement of business.
Below are steps on how to gain the competitive advantage in your business
What is competitive advantage?
In business, competitive advantage can be understood as an organisation’s ability to provide greater value to its customers than its competitors. It is the strategy used to gain competitive advantage over other firms in your industry and give you a better chance to succeed than any of your competitors.
Some of the factors that contribute to establishing a competitive edge for a business organisation are geography, technology, reputation, customer service and product quality.
Why do you need competitive advantage in business?
Competitive advantage in business will ensure that your business gets off on the right foot and ends up becoming successful. The competition is fierce these days, but with a competitive advantage in business, you can be on top of your game.
Competitive advantage is one of the most important things you can have, whether you’re just getting started or looking to expand your business. It helps keep you competitive and ahead of the curve as well as protect your assets. Ultimately, the goal of competitive advantage in business is to maintain the market share in a particular product or service segment in the industry.
How to gain the competitive advantage in business?
Preparing your business to be a competitor in the market is one thing. Keeping it there is another. a task. The path to maintaining success will come down to adopting new methods and learning new skills that will help you stay ahead of the game. Whether you are running a production business, contract business or manufacturing company, here are a few important strategies that can give you an edge over your competition.
– Establish your USP
Businesses always compete for their share of the market. Establishing a superior value proposition (USP) is an important strategy from which to get a competitive advantage in business.
A USP is a unique element, distinguishable from all others. It’s what sets you apart and helps you gain the competitive advantage. It can be anything from a slogan, to a special offer, to a custom package or service that no one else offers.
Why should customers buy your product or service instead of a competitor’s? What makes you unique? And most importantly, why would customers pay for that uniqueness? Your USP must answer these three questions in order to be successful.
– Research the competition
What does it actually mean to ‘research the competition?’ It means you have to know exactly what they are doing and how they are doing it. Are they a brick and mortar store or Internet-only store? Are they exclusively eCommerce with their website? If so, how many orders do they take per day on average? How many orders do they ship out per day on average?
Finding out about your competition will give you valuable insight into your potential market and customer base, competitors’ specialities and the best way to effect change on the market. With the information you gather, you can create a better offering, boosting your competitive advantage in the industry.
– Leverage on new technology
How well are you leveraging new technologies? How well are you keeping up with innovation and modifying your business processes to change the game? A lack of technology could be working against you. It’s time to keep up with the latest technologies and update your existing systems or incorporate new software to free up your time and focus on growing your business.
Your business can have competitive advantages by using new technology. All successful businesses should leverage new technologies to gain easy access and competitive advantage.
– Invest in proper business insurance
More often, small businesses attempt to attract customers without investing in proper business insurance. The ensuing mistake can cost them millions by leaving them exposed in case of an accident, a lawsuit or even a natural disaster. However, having the right insurance for your business is a critical element of your competitive advantage.
The proper business insurance will cover you against a variety of risks such as business interruption, property damage, cyber liability, employee injury and even criminal acts. This means that even when a disaster occurs, the existence of your business and its operations will not be threatened, and you can continue serving your customers when others cannot. But finding the right policy requires careful research and understanding. However, you can get started by exploring some of the options AMI has to offer.
– Attract the best talents
Business has changed in the 21st century. With technological tools and a global economy, companies can outsource and are forced to compete for customers on a world stage. To stand out from the crowd, having an agile workforce is essential.
Hiring an agile workforce to make your company a stronger business is one of the most exciting steps you can take. A new employee can be the difference in standing out from your competition if you know what questions to ask during interviews. Well-qualified and talented employees will increase your productivity, creating a competitive edge for your company.
– Know your customers
Customers are the most important asset for any business. They make or break your business. The survival of any business lies in the hands of its customers and ultimately depends on them. A business is successful only when it satisfies its customer needs, wants and demands and this is possible through thorough and effective understanding of consumer behaviour.
In today’s world of increasing complexity and digitisation, stay competitive by knowing your customers. It starts with understanding how customers buy and why they prefer to buy from you and ends with them recommending your business to friends, family, and co-workers.
No business will survive if it does not gain the competitive advantage at some point in its life. Successful companies learn to differentiate themselves from their competition in order to win customers’ loyalty. There is no doubt that all businesses have competitors, but not all of them are fiercely vying for customer loyalty like your company is. For your business to earn customer loyalty, you must first learn how to gain the competitive advantage and we have covered a few strategies for that in this article.