An important focus for any business strategy is to establish a competitive advantage for the firm. The two primary ways to do this are to be the low-cost producer and to be significantly different from your competitors in a way that customers value. The problem with being the low-cost producer is that eventually your competitors will match your prices. It’s a very difficult advantage to retain. When you compete on price, you’ve become a commodity — clearly not a competitive advantage.
Differentiating yourself from competitors isn’t always easy, but it can provide much better profits and be much longer-lasting. There are many ways to differentiate, from technological and marketing innovation to product configuration, customer experience, and even organization culture. Additionally, differentiation can be extremely difficult for a competitor to replicate.
What is your competitive advantage?
© Copyright 2016 Bob Legge
Bob Legge provides organizations with the ability to exceed their most ambitious goals. I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value. Contact him at email@example.com