What is YOUR Competitive Advantage?

It’s no news to anyone that today’s economic situation presents a bigger challenge to business owners than any time in recent memory. Understanding your Competitive Advantage in the marketplace can make the difference between ‘treading water’ and ‘prospering’.

Your competition is any business that provides the same or similar product and service to the consumer. Researching and understanding who your competitors are is critical in today’s market to develop your advantage over them in the consumer’s eyes.

Pure or direct competition occurs when the products are basically identical and where the pricing is set at market value. It is important to research and seek out your purest competitors to develop effective marketing strategies as these are the businesses you will go, “head to head’ with.

Competitive Analysis is a key activity that leads to specific marketing and business strategies. It includes:

1) identifying your competition and the market you intend to do business in

2) evaluating your competitor’s strategies

3) determining your competitor’s strengths and weaknesses

4) an ongoing and evolving process! You should never stop analyzing your competition!

You gather your Competitive Intelligence by talking to potential customers about what they like/dislike; observing and gathering information about your existing competitors; talking to suppliers; comparing price structures; looking at your customer service standards and doing surveys and focus
groups to get direct feedback. This allows business owners to develop their own strategies based on this information.

As a general rule, if you cannot identify some form of Competitive Advantage, reconsider your concept. When you do identify it, aggressively protect it and market it effectively to see your greatest results!

Article submitted by Catherine Turner, Director, Business Services and Programs, Job Skills.

Job Skills delivers the Self-Employment Benefits Program, an Employment Ontario program funded in part by the Government of Canada.
 

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