Steps to Defining A Competitive Advantage In Your Market
When operating in a highly saturated market, it is especially important for a business to have a competitive advantage that sets the company apart from the others. Finding that one thing that makes a business unique involves being innovative and thinking strategically about an industry. For example, Coca-Cola operates in the soda market with PepsiCo, but many customers choose to buy a Coke because of its perceived value.
In the business world, strategy is all about creating and implementing a competitive advantage that is unique, profitable, and sustainable. The goal is to provide direction that allows your business to perform in a way that is superior to your competitors. And while it may be easy to develop a strategy, it isn’t easy to develop a successful strategy… Here at BIGEYE, our marketing solutions are rooted in strategy to ensure that our clients see superior financial results.
Is your competitive advantage unique? If not, maybe it’s time to rethink it. Here are the two fundamental steps to finding your business’s true competitive advantage.
- Have a complete understanding of your business environment or landscape. This includes defining the forces that shape competition, the key players in your market, the drivers of your industry’s future, and where your firm interacts in the industry.
- Next, choose where to compete. How will your business position itself? Evaluate the industry using Michael Porter’s “Five Forces Framework” as a tool to choose your positioning. The positioning should speak to the value perceived by your target market.
These two steps should result in finding a competitive advantage that results in customers choosing your firm over competitors. Does your business need assistance in implementing strategic marketing processes that result in financial returns? Let our team of creative minds and strategic thinkers help! Contact us today and let’s get started.
Source: Casadesus-Masanell, Ramon. September 4, 2014. “Introduction to Strategy”. Retrieved from Harvard Business School.