It entails research into your competition, how their products differs from yours, how their operations differ from yours and how their marketing differs from yours. Your research should also include the demographics and buying habits of your target customer so you can identify or create your competitive advantage. Then list how those qualities compare to your competition and what you can do to best that competitor. Once you have a list of qualities that give you a competitive advantage, perform a SWOT analysis, which is taking each point and determining the strengths, weaknesses, opportunities and threats associated with that product, operational system, marketing campaign or customer base.
As painful and challenging as it can be for a business to build a competitive advantage — that advantage is often fleeting. External change such as competition, markets, business models, environment, customer preferences and technology deprecate your competitive advantage with time.
In business, what works today won't work tomorrow. Another reason that competitive advantage decays is that firms tend to copy each other. If you develop a successful product, it will quickly be mimicked. If you develop a effective marketing technique it will be copied.
Sustainable competitive advantage is something you do better than any other firm that's not likely to decay. Sustainable Competitive Advantage Sustainable competitive advantage is a lasting ability to outperform all competition in a particular area or industry.
As elusive as sustainable competitive advantage is, it's easy to think of examples. People The knowledge and abilities of your people is the source of most competitive advantage.
If you hire a modern day Thomas Competitive edge business plan example who pumps out ground shaking innovation after ground shaking innovation as long as you hold unto the employee that's a sustainable competitive advantage.
This scales to organizations big and small. Your people are typically your greatest competitive asset. Products come and go — a team that can repeatedly design products that wow your customers is sustainable.
Culture Sustainable competitive advantage is all about your ability to innovate and change. You may have a highly talented team. However, if they don't work together towards a common mission that's unlikely to translate to a sustainable competitive advantage.
Negative office politics and resistance to change will cause your competitive advantage to rapidly decay.
Your culture is the way your team works together to focus their energies towards common goals. Firms that enjoy a culture of aggressive change, positive teamwork and innovative spirit tend to maintain and build upon competitive advantages.
Processes If you can manufacture shiny-blue-widgets faster and cheaper than anyone else — this may represent a sustainable competitive advantage.
Superior processes can be difficult for your competitors to emulate.
In some cases, this is because processes happen behind closed doors. However, even public facing processes such as customer service are difficult for firms to copy.
Some firms have good relationships with customers that continue decade after decade. Other firms have combative relationships with customer that continue until the firm goes bankrupt. Knowledge The secret of business is to know something that nobody else knows. However, much of the world's industry specific knowledge is locked up in the knowledge management systems of firms.
You can't read on the internet how to design, produce and sell aircraft. It requires a great deal of knowledge that's difficult to obtain. In many industries, know-how is a big barrier to entry. There's no public manual for how to start an investment bank or robotics company.
The great thing about knowledge is that it helps you change. It's sustainable as long as you continuously improve it. Technology Firms weave together technologies to support innovation, production, processes and customer relationships. In large firms, these technologies stacks become extremely complex.
Firms that effectively architect and govern technology may enjoy a significant competitive advantage over firms that struggle to develop technology capabilities and efficiencies. Capital Capital investments can represent a sustainable competitive if you own unique capital that no one else can buy.
If you own a railway that cuts across hundreds of kilometers of urbanized land — it's almost impossible for anyone to build a competing route.Competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to .
It’s critical to create a competitive edge for your product within your target market. To distinguish and position your product, be the first in the market and leverage your expertise to establish leadership.
Work constantly to maintain your competitive edge. Quality, customer service and price do. Competitive advantage decays. As painful and challenging as it can be for a business to build a competitive advantage — that advantage is often fleeting. External change such as competition, markets, business models, environment, customer preferences and technology deprecate your competitive advantage with time.
When preparing the marketing plan, the business owner identifies all the possible distribution channels the company could use and the market potential of each one.
Write a Competitive Edge for. You should be able to state your competitive advantage succinctly, both in your strategic plan and when talking to others about your business.
Learning from others can be helpful in identifying your own competitive advantage. Check out the following two examples to see how these organizations define their uniqueness. Assist with core market & business development. Align the Business Plan needs & opportunities. Provide an Action Plan for implementation.
Competitive Edge can assist with Government Grants! Competitive Edge can assist in securing government grants or subsidies. Our grant submissions can be .