Importance of A Competitive Advantage
Updated: Jan 1, 2019
One of the first questions I ask new clients is: WHAT IS YOUR COMPETITIVE ADVANTAGE? Believe it or not by have one may foretole your success as a business owner. The concept of what a competitive advantage is simple: it's what makes your product/services unique versus your competition. A SUSTAINABLE COMPETITIVE ADVANTAGE is one that can not be replicated by your competitive and a COMPETITIVE ADVANTAGE may one exist for a period of time because it can be replicated with some harder than others. The theory is if a company has a product/service that is unique over time people will come to your company and buy it as they discover they can't get it from your competition. Many companies fabricate a competitive advantage thru marketing which may play for a time, but it's those who market a true competitive advantage that enjoy above trend growth and profit margins.
As an owner of two firms when I formed them I made sure I had a competitive advantage in each or I may have not even moved forward in opening them. Why? Because I knew chances of success would be dramatically higher with it than without it. Further, I knew with one profitability would be higher as my services would over time be differentiated thus commanding a higher price over my competition. So a competitive advantage plays a direct role in defining your long run profitability and business value! There are many commodity businesses where there is stiff competition that have a competitive advantage. In my case that is my two businesses in a sense, but each by itself offers something unique thru there own competitive advantages and combined form what I deem a sustainable competitive advantage thru the type of services I offer and methods in which I deliver them.
So if your working with a consultant especially a marketing consultant and they never ask you define your competitive advantage than how can you allocate your resources to what your core business strength is? It's incredible to how business owners hire individuals to fix a problem without having a foundation upon which to fix that problem. Thus, why in many cases a problem is only fixed in the short run without truly fixing the long-term bigger problem.
At TheProfitConsultant.me, we resolve profitability issues thru a framework thats starts by defining your competitive advantage as part of you business strategy because believe it or not it will play a significant role in your success, your profitability and value of your business. Contact us at firstname.lastname@example.org to define yours so you can align your resources with it to achieve your financial goals.