A competitive advantage\u00a0is what makes a company\u2019s goods or services\u00a0better than other products of same in the same rival. This term is commonly used in businesses, but the strategies work for any organization, country, or individual in a competitive environment. Therefore if you dint have a sustainable competitive advantage, don\u2019t think it twice to compete else you\u2019ll lose.<\/p>\n
According to Wikipedia, Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favourable long term position over competitors. In business, a competitive advantage is an attribute that allows an organization to outperform its competitors.<\/p>\n
Read Also<\/em>: Competitor Analysis: All you need (+ How to Start Guide)<\/a><\/p>\n Meanwhile, to enjoy a competitive advantage, a firm has to provide its customer\u2019s with benefits similar or superior to its competitors but at an affordable or same price. This doesn\u2019t mean the quality of the product should be greatly tampered with. These unique benefits give the firm a competitive advantage. However, for how construct a competitive advantage, you\u2019ve got to consider the determinants listed below.<\/p>\n A company should state clearly the benefit(s) of their product or service. It must also strive for real value and create interest.\u00a0know your product\u2019s features, its advantages, as well as how they benefit your customers. Another important thing is staying up to date on the new trends that affect your\u00a0product.<\/p>\n A company should establish who are your customers from the company. Creat demand by knowing who buys from you and how\u00a0you can make\u00a0their life better with your products or services.<\/p>\n For rapid growth, it is of great importance if a company understands its competitors in the competitive view. To build a competitive advantage, a company must be able to detail its\u00a0benefits in such ways that other\u00a0competitors\u00a0may not. Let there be a recall value that distinguishes your product from another.<\/p>\n A sustainable competitive advantage is a strategy that makes a customer choose your business over another one. A company can only win a larger amount of market share by promoting, a competitive advantage.<\/p>\n Read Also<\/em>: Competitive Pricing: How to do Competitive Pricing Analysis<\/a><\/p>\n For instance, we all have that particular thing that drives us toward a particular product. Have you considered why you choose Indomie noodles over minimie noodles? This depends on the sustainable\u00a0competitive advantage. A sustainable competitive advantage is a set of unique features of a company that make its products be perceived by the target market. It is the reason behind\u00a0brand reliability. Thus, it makes you prefer one product or service over another. In addition, brand and big pockets are an added advantage to boost a sustainable competitive advantage using the social media platform. Let\u2019s also take a look at few examples using Facebook, Google and Whatsapp.<\/p>\n Google enjoys a sustainable competitive advantage of being the only effective search engine over the internet. They were only able to reach this extent because of their size, innovation, market position, and network influence.<\/p>\n Facebook also enjoys a sustainable competitive advantage over its competitors such as google plus. This is because it is one of its network effects. Moreover, there are other reasons which led to their success include; constant innovation, advertisement, etc.<\/p>\n Whatsapp\u00a0is of the examples of competitive advantage. It enjoys a competitive advantage over other platforms. After all, its users feel they are better than others because most of their contacts use Whatsapp.<\/p>\n There are two main\u00a0types of sustainable competitive advantage\u00a0that exist. They include;<\/p>\n Comparative advantage\u00a0is a company\u2019s strength to create goods or service more efficiently compared with its competitors. However, this can be through a higher quality of product made with a lesser cost of production. Thus this equally means that a firm can make higher profits by selling their goods or services with competitive price without compromising on its quality.<\/p>\n Another type of sustainable competitive advantage is the differential advantage. It allows a company to create unique innovative products that are appealing to its customers. This type of advantage can be achieved through a lot of research and innovation. It requires a firm to understand the needs of the customer and satisfy them with every need.<\/p>\n In the present business atmosphere, the competition has greatly increased as companies are speedily concentrating on adverts and other promotional campaigns. A compelling brand image\u00a0and\u00a0positioning strategy\u00a0lead to customers loyalty to the brand. Similarly, this forces companies to come up with strategies that will help them surpass their competitors. Meanwhile, below are few strategies that can create an edge for establishing a competitive advantage.<\/p>\n Related Articles:<\/em><\/p>\n Finally, understanding the basic principles of competitive advantage is essential for designing an effective business strategy. As earlier discussed above, Competitive advantage is what makes an entity\u2019s products or services desirable to customers than any other competitor. This gives the firm\/company a greater profit margin than its competitors.<\/p>\n![\"Sustainable](\"https:\/\/businessyield.com\/wp-content\/uploads\/2021\/05\/person-in-white-gloves-holding-vial-of-blood.jpg\")
<\/a>#1. Benefi<\/strong>t\u00a0<\/span><\/h3>\n
#2. Target Market\/Audience: <\/span><\/h3>\n
#3. Competitors<\/strong><\/span><\/h3>\n
Read Also: COMPETITIVE LANDSCAPE: Definitions, Examples, Analysis, Slides (+ Free Templates)<\/a><\/span><\/h5>\n
Competitive Advantage Examples<\/span><\/h2>\n
#1. Google<\/h3>\n
#2. Facebook<\/h3>\n
#3. Whatsapp<\/span><\/h2>\n
Types of Competitive Advantage<\/h2>\n
#1. Comparative Advantage<\/a><\/h3>\n
#2. Differential Advantage<\/a><\/h3>\n
What is Competitive Advantage Strategy?<\/span><\/span><\/h2>\n
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Conclusion<\/span><\/h2>\n