“The one who follows the crowd will usually go no further than the crowd. Those who walk alone are likely to find themselves in places no one has ever been before.” -Albert Einstein
Entrepreneurs have a lot to worry about- from launching their products innovatively to exceed the expectations of their customers to maintaining their reputation in the industry. There are a lot of challenges that they have to face, but the real challenge is to be different from the rest. To earn a distinctive place among the competitors is something that is actively running in every business-owner’s mind.
What is a competitive advantage?
A competitive advantage is something unique that you are offering which your competitor lacks. In order to build an adequate customer base, you need to provide them with a compelling reason to do business with you rather than your competitors. Businesses can be similar in nature but with a competitive advantage you can make sure that you will be able to attract more customers by standing out from the crowd.
Why do we need a competitive advantage?
Businesses can be similar in nature but with a competitive advantage you can make sure that you will be able to attract more customers by standing out from the crowd. Many a times we try our best to “fit in” with the system and be one of them, but in order to succeed in a business you ought to stand out and be the unique one. Capitalizing on your differences in the industry rather than your similarities will not only give you the competitive advantage you were always looking for but it is a way to bring out the best in you too.
How to identify and develop a competitive advantage?
This question will decide the future of your business and by implementing the right strategies you will be able to build a prosperous business structure. Your main goal is to determine the factors that differentiate your business from the others and make it your USP. Remember, you can only stay in a business until you manage to stay different. The smarter you can be about developing and promoting your competitive advantage, your business will have a better chance to succeed. Here are the basic ways to establish a competitive advantage:
Focus on a particular product
Have you got a particular skill-set which can be an asset to your business? Are you technically qualified to run a specific business in the market than anyone else? Use your knowledge and expertise to set up a business which is unique in nature and rare in the market.
Lead by cost
One of the easiest tools for building a competitive advantage is to offer the best price in the market. Customers are allured by the idea of finding a similar product cheaper than the others.
Difference by nature
This method involves being different from others for the same product. you can attract customers by advertising your product or service to be unique than what is already in the market. For instance, you can have a special recipe for a popular dish which is available elsewhere in the market if you are in a restaurant business.
In order to get what you never had, you got to do what you never did before- be different, be successful!