How to gain a competitive advantage

In today's oversaturated market, it can feel as though small-business owners have to reinvent the wheel to stand out amongst their competitors. Instead, these businesses should focus their efforts on identifying their own strategic differentiators when compared to other leaders within their markets.

A competitive advantage is the factor that allows an organization to outperform its competitors. Investopedia has described the most valuable differentiator as one that is lasting and not easily replicated by other businesses. While this advantageous trait is unique to each individual organization, finding your company's own can be the difference in lagging behind versus leading your industry.

Outstanding customer service
While every leader knows how important customer service is, they may not have a complete understanding of the full effect consistent and high-quality experiences can have when it comes to creating lasting relationships with customers.

Microsoft Research's Global State of Customer Service Report found that 95% of consumers reported that the way a company treats them is one of the most important factors in their continued loyalty. In a market where each version of a product or service is inherently similar by nature, providing outstanding service can be the driving force behind building a lasting network of customers. Identify ways you can improve your service platform, such as utilizing post-purchase surveys to identify gaps or finding faster ways to deliver your products.

Quality customer service is the best way to differentiate your brand if you are in a market where the offerings are relatively similar.

Product leadership
Defined by Hubspot as a strategy to highlight the unique features and benefits of a product or service as means of separating it from competitors, product differentiation succeeds best when business leaders have the available resources to create high-quality offerings or innovate from the ground up. There are a variety of attributes you can choose from when differentiating your product, including its design and the quality of materials. This method also creates a valuable brand message, as your marketing team can utilize this core feature as a theme in future campaigns.

While product differentiation adds value to your offerings and can enable businesses to achieve higher margins, it also may strain resources due to the time spent developing a new product.

Finding your advantage
When it comes to identifying ways to gain a competitive advantage, small-business owners should closely analyze the industry they reside in as well as their own companies strengths and weaknesses. Whether you decide to embrace a customer-first approach or instead focus on improving on your product itself, it's crucial to have a complete understanding of the competitive landscape you're facing.

Looking for additional assistance with your small business? The Law Offices of Donald W. Hudspeth, P.C. assists businesses with corporate matters and various other types of legal concerns. Please call 866-696-2033 or contact the firm online to make an appointment.

Categorised in: Starting a Business in Arizona

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