A Competitive Advantage is a condition(s) that allows a business to produce a product/service at a lower price or in a more favorable manner.
Ask yourself this question:
Why is my business or product better?
This folks is your Competitive Advantage.. Now let’s break it down with examples!
Example 1: I have a patent
This exclusive right is a hot commodity in any industry. This protects you against intellectual theft, and increases your market value. By making your product more sustainable, you naturally weed out (pun intended) a competitors advantage. You did the work so own it!
Example 2: I have a trademark
Trademarks are a valuable asset that help you distinguish your product from a competitors. The more your business grows, the more valuable your brand will be. Can you begin to see why this would give you an advantage? Make your products stand out!
Example 3: Cost, Cost, Cost
Also known as “Comparative Advantage“, a lower cost is the leverage you need to come out on top 99% of the time! The majority of consumers will choose the cheaper option of a service, this fact can apply to investors and partners too. It’s a win-win for everyone involved. How can you provide the same (if not better) service for cheaper?
The last factor to consider- how does your product differ from a competitor? Also known as “Differential Advantage“. While patents and trademarks fall under this category, another edge you might have is advanced technology. Maybe you can produce products at a much faster rate, saving time and cost! If a consumer feels they can’t obtain your service anywhere else you become first choice. Whatever your competitive advantage is, make sure to make it clear and easy to understand. When deciding on your competitive advantage consider a variety of factors; including cost structure, brand, quality and what sets YOU apart.