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When it comes to business ownership and management, it’s likely there will be countless competitors within your field. Competition is always going to be there, and it can make or break your business. Competitors can profit from the weaknesses of your business just as easily as you can profit from theirs. The factors that allow your business to outperform others is your competitive advantage.
What makes your business different from competitors?
Let’s talk value proposition. Value proposition is the value that your business offers to customers through goods or services. This is what piques the interest of your customers. Compare this to the value proposition of your competitors. What do they offer and what value do they give to customers? Think about what they have that maybe you don’t; perhaps, that’s the piece you’re missing.
To stand out (in the best way) your business will need to differentiate it’s products or services. The following are ways businesses establish competitive advantage:
Skilled Labor and Customer Service
Businesses with employees that are knowledgeable about their field can be more productive and efficient. Not only is it beneficial to have skilled employees on your team, but it’s also important that you excel in customer service. Customer service is one reason many people shop at small businesses- read more about it here!
Research and Development
Businesses that invest in research and development can establish competitive advantage by creating a product or service that is unlike anything seen before. They can create something so unique that it can’t be easily replicated by competitors. In addition to that, when a business stays up to date with technological advances, they can take advantage of new opportunities. Entrepreneurs, like the ones seen on ABC’s Shark Tank, invest in research and development.
Brand Awareness
Businesses can stay ahead of competitors when their brand name is known. If someone isn’t in need of your product or service right now, they may be in the future. So, when they do, they’ll remember the name they’ve seen the most! Get your brand name out there through advertising. If you’re not sure where to start, BluLux Marketing offers services that are sure to catch your audience’s eye!
Access to Resources
Do you partner with a supplier that exclusive to you, or one that others don’t know about? Or maybe you use sustainable substitutes that can give your products extra quality or value. To learn more, read our blog Sustainable Practices for Small Businesses.
Price Leadership
Businesses with the lowest prices can win when it comes to competitive advantage. Think about Walmart, which is known for their low prices, compared to other big box retail stores. This doesn’t work for every business though; low cost only pairs well with a large sales volume, so profit is still maximized. Businesses that offer student, military, or senior discounts may sell more to those groups in comparison to competitors that don’t offer discounts.
Does your business have what it takes to come out on top? Likely it does, it may just need a little extra help. At BluLux Marketing, that’s exactly what we’re here to do. We want your business to succeed. Schedule a consultation with us today!
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