Successful businesses have strong competitive advantages. Competitive advantages include the attributes of your product or service which competitors find difficult to copy. For example, the quality of your staff: their skills, attitudes and relationships with customers; and the innovative features that constitute the intellectual property of the business.
There are 4basic approaches to gaining a competitive advantage which can be applied to most types of innovations. These are:
- become the low-cost supplier
- develop differentiated, innovative products and services
- target a niche: geography, industry, product/service
- employ differentiated business methods and approaches.
To successfully differentiate your product, service or business model, it must be:
- important – deliver a valued benefit to a large proportion of buyers
- distinctive – offered only by your business or very different from other businesses
- superior – the offer must be better than any other technologies or processes which provide the same benefit
- communicable – customers must see the benefit and communicate it to others easily
- protected – the difference must not be easily copied by competitors
- affordable – the customer must be able to afford the benefit
- profitable – the business must benefit from introducing the benefit.
Also consider...
- Learn more about identifying your competitive advantage.
- Last reviewed: 25 Jul 2019
- Last updated: 30 Aug 2022
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