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Can you make them? What is their impact on strategy making?
Competitive advantages are what customer gets best against our competitors if they want to buy from us. It can be unique technology, best products, best delivery, best services, providing VMI, etc. Offcourse lower cost of the product becomes competitive advantage when you are equal to or better than your competitor in other areas...like quality, delivery, etc
Thank you for your constructive participation.
A competitive advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing addetional benefits and service that justify similar, or possibly higher, prices. This includes access to natural resources, access to highley trained and skilled human resources, or techology (whether as a part of the product/service or as a competitive aid in the business process). The more sustainable the compaetitive advantage, the more difficult it is for compititors to neutralize the advantage.
To identify a company's competitive advantage(s)
- Perform a detaied assessment of the company's own strengths, weaknesses, and assets. Determine which ones can potentially be developed into cimpetitive advantages, taking into account inportant internal and expternal factors.
- Evaluate how the company's competitive advantages align with the most urgent and important needs of customers in the market, as well as the strengths and weaknesses of compititors.
- Evaluate whether they are positional or capability-based advantages and how sustainable they are.
- Prioritize the list of potential advanatages based on the likelihood that they could be achieved, sustained, and effectively utilized to differentiate the company. Be honest about which competitive advantages are truly feasible, sustainable, and substantial enough to differentiate the company.
- Involve key members in the company in this assisment to ensure that nothing is overlooked and multiple perspectives are considered.
- For additional objectivity, validate the assessment with outside experts or advisors.
- Articulate the most promissing compatitive advanatges that have been identified in a concise statement. this statement should convey in one or two sentences what the company does, for whon it does it, how this uniquely solves an urgent need in the market, and why competitiors can't imitate it. Continue honing the statement until it is clear, compelling, and feels right based on the fundamenta; strenghts of the organization.
- Test the statement with trusted advisors and a small group of customers for confirmation that it communicates a pervasive and differentiated reason for doing business with the company.
Based on the definition of the company's competitive advanatages, determine the fundamental business strategies that make sense to pursue. start by eliminating strategies that are not applicable. Then consider which of the remaining strategies make the best match based of the business itself, the needs of the market, and the value propositions the company is trying to demonstrate to its stakeholders. Make this decision with the management team. Involve the board of directors for additional expertise and to validate the approach. Reconize that this is just one aspect of a holistic business sstrategy, and invest time and energy in making sure the rest of the strategy lines up around the fundamental business approach that has been chosen and vice versa.
Dear Mr.Mohammad
Competitive Advantage can be achieved by company putting forth core competencies against the available opportunities.It is an advantage that the company can gain when it can provide same service or product which is available from competitors but a lower price.
Or it can charge high price by providing better or greater valued product or service through differentiation.
You can tailor your marketing strategies as per your need and need of the niche market.
Compitative advantages are what compel the customer or consumer to buy or consume our product even from the vast range of products of competitors in mark. What compel the customer to buy our product can be our unique technolegy and features, customer service, delivery what promise, quality product but as low as possible cost, un resistable promotion and offers,and the most important thing is customer awareness about the product.
Competitive advantages are two faced - one is what a consumer gets as a value add over other competitor brands and second is what the company gains as an advantage over the other competitors be it cheaper pricing, more product features etc
