Simply Business are ‘Profit and Growth Advisors to Business’ and we have developed the 13 secrets to profitable growth in business.
One of the key secrets is strategic competitive advantage. This refers to understanding why a customer will buy from you and not your competitors - the extent to which business delivers value superior to that of its competitors.
Businesses are often not aware of the benefits obtained if they develop a clear competitive advantage in the market.
Being the same as your competitors is not enough and listing the needs of your clients is also going to do nothing to influence your strategic competitive advantage. Strategic competitive advantage must be a collection of strategies that when implemented influence buying behavior. It must be the culture in your business and not just words in a business plan.
If there is no differentiation then customers will buy on price alone. Many businesses are doing this to exist. The number of businesses closing down is a strong indication of an inability to exist in the market simply by winning work by reducing margins without an ability to lower costs associated with the work.
There are two methods of positioning a business in the market; low cost low price or differentiation. For the majority of businesses low cost and low price is not an option therefore they must position themselves by differentiation. How are you going to differentiate your business in the future so customers buy from you, not your competitors? Clear differentiation is achieved through innovation. Innovation can be applied to products, services or what is often forgotten, systems, processes and procedures.
How does a company develop its strategic competitive advantage? We recommend conducting a strategic competitive advantage workshop involving the following;
- Identify what customer’s needs are (buying criteria)
- Undertake competitor analysis
- Undertake brainstorm of ideas on what could be done to significantly shift the business’ strategic competitive advantage through innovation and to identify the top three initiatives that would provide the greatest benefits to the company
- Develop a strategy and action plan to implement the ideas identified
The principle difference here is to think of your strategic competitive advantage as a group of strategies to influence the future buying behaviors of your customers and the culture of your business, not just being a statement in a business plan.
If you would like know more about identifying your strategic competitive advantage, please contact;
Simply Business Australia
Phone 0419 834 678