18 Feb 7 Strategies to Define your Competitive Advantage
What is a competitive advantage and why should it matter to you? Competitive advantage is defined as the ability to stay ahead of present or potential competition. This is typically done by evaluating strengths and weaknesses of competitors and seeing where you can fill in the gap or step up and improve.
Companies develop a competitive edge when they produce attributes that allow them to outperform their competitors.
Here are seven ways companies and individuals can create an edge.
- Cost Leadership Strategy.
Companies may place themselves ahead of the pack by offering attractive pricing.
- Differentiation Strategy.
Branding is likely the most widely used method to differentiate one company from another.
- Innovative Strategy.
- Operational Effectiveness Strategy.
Some companies just do what they do better than anyone else.
- Technology Based Competitive Strategy.
Companies have sought for a competitive edge using new technology or technology in a new way.
- Adaptability Competitive Advantage.
As markets, economies, and other factors change in this increasingly unstable and unpredictable environment, companies that can adapt have a distinct advantage.
- The Information Advantage.
Almost all the other strategies benefit from excellent information. The definition of competitive advantage is the skills needed to outpace your rivals.