Each company strives to obtain an advantage that will enable it to compete and “hold out” in the market, especially as the consumer has become more intelligent; What can companies do to gain and retain this competitive advantage? In answering the question, we enumerates some strategies that will differentiate the business (or product or service) and retain customers.
What is the competitive advantage?
“If someone invents a clock that rotates in the opposite direction, but the merit of this is not mentioned in the investment proposal, what is the benefit to the customer from it?” The certified management consultant, Mohammed cites the example mentioned in the context of distinguishing between the different competitive advantage that makes the product (or service) unique without adding any value to the customer, and the competitive advantage that provides value to him, the last advantage being characteristics that a product (or service) has ), which makes the customer choose that particular product.
Concerning the steps necessary to create a competitive advantage, Counselor Bensalah talks about the following:
1. Thinking of the customer first: the entrepreneur must know who the customers are? What are their requirements and needs? In order to be able to create value and a competitive advantage, compared to the market, and be able to attract the target segment of customers, while retaining them for a longer period.
2. Offering value, not price: While most companies are considering lowering their prices for the sake of visibility, there is value in going in the opposite direction: “You don’t buy a Rolex to tell us the time”; Thus, charging a higher price is what is referred to as “premium pricing” i.e. elevating the brand’s image by attracting buyers who do not take the low priced products seriously.
3. Continuous development: The growth process of the start-up company is enhanced by monitoring developments in the professional world, taking advantage of the elements that contribute to the development of competitive advantage, and taking into account some of the technological factors whose introduction in the industry may contribute to progress.
4. Marketing and innovation: Marketing mechanisms and efforts are based on highlighting the advantages of products or services from the technical aspects, as well as in showing the functional aspect related to the employees of the company (or institution). Marketing needs more development that is a driver of innovation, with the importance of noting that development and innovation aim to continue providing value to the customer when his needs evolve and change over time.
Ways to create a competitive advantage
The American company Gavel International adds some other methods, in this context, including:
- Create a corporate culture that attracts talent: Finding great employees is critical to productivity and cost reduction; In addition, the entrepreneur should know that having happy employees in his company means that customers will have better experiences, as customers know the difference between buying from a company where employees are satisfied and happy and another company whose employees are not, when the entrepreneur supports workers and employees, less Problems with products or services, providing a competitive advantage.
- Clarify the strengths: Every business has strengths related to the processes, technology used, knowledge and experience, which attracts customers… Therefore, using strengths, in innovative ways, to enter new markets and create competitive advantage.
- Locating locations where there are not enough services: It is known that the fish that live in the oceans are larger, but they require additional effort in fishing, and mastery of some expertise.. The same applies to clients, when the entrepreneur looks to areas where clients do not get On sufficient services, it suits the establishment of a stronger brand and provides a unique competitive advantage.