The Importance of Building Your Own Competitive Advantage
Posted: Sun Dec 22, 2024 8:53 am
Often, the competitive advantages of individual companies are noticeable even without detailed analysis. The list of advantages of a brand against its competitors may include a wide variety of features.
It is important what criteria the comparison will be based on. Accordingly, the assessment of competitive advantages can be carried out in different ways. Everything depends on the specific case. Let's consider the main components of a competitive advantage:
Usefulness for the company itself is the philippines whatsapp most important element of the list under consideration. A particular advantage should, first of all, benefit the business. Such a strong point of the company is important in the context of forming a strategy aimed at increasing profitability.
Uniqueness is another important component in the system of competitive advantages. The uniqueness of a product in terms of individual properties significantly complicates competitors' development of effective offers for consumers.
Protecting the strengths of a product makes it difficult to copy and counterfeit it. In this case, there are more opportunities for legal protection of a trademark. This situation contributes to the stability of the company's development over a long period.
The value of these characteristics of the company's products for the target audience stimulates the consistency of high sales figures.
Read also!
"Communication strategy: rules and stages of creation"
Read more
Ensuring competitive advantages is a complex process that includes a number of aspects. They can be divided into two types.
Internal advantages
This type of competitive priorities is based on the company's ability to minimize the cost of the product by reducing production costs. It is important not to allow quality characteristics to fall below the average market level. If the input price of a product is reduced by a loss of quality, then it has to be sold cheaply, which affects the profitability of the business. In this case, low cost cannot be considered a competitive advantage.
To achieve a leading position in its market segment, a company needs to improve productivity indicators and simultaneously reduce costs. What advantages does reducing production costs provide? These are:
creates conditions for maintaining high profitability, overcoming market crises and success in competition without reducing prices;
provides the potential for capturing new markets through the use of dumping policies;
allows you to receive high income, which can be redistributed to finance the modernization of production, which, ultimately, will allow you to gain additional advantages over competitors;
creates reliable protection for business from the influence of competing firms.
It is important what criteria the comparison will be based on. Accordingly, the assessment of competitive advantages can be carried out in different ways. Everything depends on the specific case. Let's consider the main components of a competitive advantage:
Usefulness for the company itself is the philippines whatsapp most important element of the list under consideration. A particular advantage should, first of all, benefit the business. Such a strong point of the company is important in the context of forming a strategy aimed at increasing profitability.
Uniqueness is another important component in the system of competitive advantages. The uniqueness of a product in terms of individual properties significantly complicates competitors' development of effective offers for consumers.
Protecting the strengths of a product makes it difficult to copy and counterfeit it. In this case, there are more opportunities for legal protection of a trademark. This situation contributes to the stability of the company's development over a long period.
The value of these characteristics of the company's products for the target audience stimulates the consistency of high sales figures.
Read also!
"Communication strategy: rules and stages of creation"
Read more
Ensuring competitive advantages is a complex process that includes a number of aspects. They can be divided into two types.
Internal advantages
This type of competitive priorities is based on the company's ability to minimize the cost of the product by reducing production costs. It is important not to allow quality characteristics to fall below the average market level. If the input price of a product is reduced by a loss of quality, then it has to be sold cheaply, which affects the profitability of the business. In this case, low cost cannot be considered a competitive advantage.
To achieve a leading position in its market segment, a company needs to improve productivity indicators and simultaneously reduce costs. What advantages does reducing production costs provide? These are:
creates conditions for maintaining high profitability, overcoming market crises and success in competition without reducing prices;
provides the potential for capturing new markets through the use of dumping policies;
allows you to receive high income, which can be redistributed to finance the modernization of production, which, ultimately, will allow you to gain additional advantages over competitors;
creates reliable protection for business from the influence of competing firms.