Why would you buy one soft drink over the other? Why will you be willing to pay a higher price for a pair of sneakers just because they are made by a certain brand? The answer lies in competitive advantage.
Short term Vs long term competitive advantageLet us look into a few aspects that one can work which would give entrepreneurs a competitive edge over their competition. But before we go into the details, one must understand that are two major types of competitive advantage. One being long term or sustainable competitive advantage and other short term competitive advantage. Long term competitive advantage is sustainable in the sense that it cannot be easily copied or imitated. This would give your business a lifelong boost. While short term competitive advantage is one that is used to achieve short term turnover goals. When you want your business to reach a target sales for a quarter or a year. Such offering gift hampers in Singapore with your product. This is not sustainable, it will give your business a temporary boost.
Short term competitive advantage is when you want to enter the market with a bang. Some businesses use this strategy to get hold of the large market fast and then they move onto long term competitive advantage to keep/sustain that market. This factor would largely mean offering your product at a price lower than what your competitor is offering. Or offering a lucky hamper along with the purchase of your product. This way you get a shift in the market and then you move on to build trust, service loyalty etc. to keep that shift in your favor.
Customer excellenceCustomer excellence refers to customer satisfaction, but it does not end here. You need to provide excellent customer service, you need to build a loyal fan base, a loyal customer base.
Operational excellenceThe next thing on the list is operational excellence. This is when you run your company extremely well. All the way from management, supply chain, human resources, accounting, finance, all the aspects that your company is built on, if rum extremely well, it reflects in the success of the company.
Product ExcellenceMoving on to product excellence. This is your product design or features that makes you different. They have specific design characteristics that is identified only to your company. When your customers’ think of a certain feature, your brand is what will come to their mind first, example the magnetic charging pin in notebook computers, only one brand provides that feature.
Location ExcellenceAnother main area of competitive advantage is location excellence. Like in real estate “Location, Location, and Location”. This would largely depend on what your business is. If it’s a coffee shop, you know that you need to be on every corner. Fast food franchise also need to be accessible everywhere. Because these things are pickups and need to be accessible easily. These can be a few others in sustainable long term competitive advantage.
These are some of the long term advantages.
Harold Prado June 21st, 2017
Posted In: Business Services