Competitive advantage is achieved through unique strategies and skills, creating a loyal customer base and a recognizable brand. A product with a competitive advantage has a unique benefit that distinguishes it from similar products, and aggressive marketing campaigns increase public recognition.
Competitive advantages are those resources that enable a business entity to develop and maintain an advantage over competitors that produce similar goods and services. Competitive advantage differs from comparative advantage in that the focus is often more on the strategies and skills involved, and less on resources and the ultimate cost of production. A competitive advantage can be achieved through a brilliant public relations strategy, a unique mode of production, or the addition of some benefit that goes beyond the benefits offered by similar products on the market.
The purpose of seeking competitive advantage is to establish that the company and its products are unique within the wide range of comparable goods and services. By doing so, companies can create a loyal customer base that will stay with them even if operating costs make it necessary to increase the unit price of the product in question. To achieve this goal, the manufacturer must include and exploit some aspect of the product that will hold and retain the consumer’s attention.
A simple example of a product with a competitive advantage would be scented bleach. There are a number of companies that produce chlorine for household use, such as cleaning and laundry. However, companies that found a way to add a pleasant scent to the product were able to attract consumers who wanted a product that was effective and left a more pleasant scent. Going one step further, some chlorine producers were able to create unique blends of scents and add to their chlorine products. This further differentiated them from their competitors and helped secure their share of the consumer market.
Along with developing a unique benefit for the product, aggressive and engaging marketing campaigns can help establish a company and its product line as highly desirable. Even when similar products are as good or perhaps even better at the core purpose of the product, a competitive advantage is achieved when public recognition is greater. Many consumers will only buy products that they consider to be brands. Successful marketing helps establish a product as a brand and thus increases the chances that the consumer will buy the product over a competitor.
Competitive advantage is a process that builds on a company’s collective skills, knowledge, and strategies. If successful, the effort to achieve competitive advantage will result in a product that is readily recognized by the public, has some benefit that distinguishes it from similar products, and is available at a price that the consumer believes is fair to the benefits derived. to use the product.
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