Competitive Edge: The competitive differential is any characteristic that differentiates your company from others in the eyes of your potential customers.
Competition is inevitable. Even if you are currently in the blue ocean, that is, making a product that no one else has, sooner or later, another company will come along, offering a similar outcome.
So why will the “so and so” consumer choose your company over your competitor?
Well, one of the answers is your company’s competitive advantages, as they provide unique advantages over other companies.
In this article, we will understand four ways to differentiate your company from the competition and thus build quality competitive differentials for your business. Come on:
Table of Contents
Knowing Your Competitors
The first step to differentiating yourself is to know what is available in the market. That is, you need to know your main competitors closely.
A tip is to impersonate a customer and thus observe how your customer’s entire process is. Then, if the product is affordable, try to buy it to check its quality.
A suggestion of points you can watch out for:
Competitive Price Differential
The most obvious differentiator is the price. You can choose to be the cheapest product on the market and thus differentiate yourself from your competitors.
How To Get The Best Price On The Market?
To stand out with this competitive differential, your company needs to manufacture products in large quantities to profit from the sales volume.
You will need to find suppliers who can sell the materials your company needs in large quantities and at meager prices.
Pricing as a differentiating strategy offers some risks for your company, be aware of them, as they can be very harmful in the long run.
The first risk is that your customer will not be loyal to your brand. By offering the best price, your customer will switch your company as soon as another one with a lower price appears.
The second risk is that you need excellent cost control and sales pricing to ensure you are not losing money on every sale.
Also Read: Why Create A Website For Your Company?
Segmentation and specialization
The second way to create a competitive differential for your company is by segmenting the market and your target audience.
When you try to please everyone, you do not entirely please anyone, as it is impossible for you to understand and fulfill everyone’s desires.
Therefore, seek to segment your performance to a niche and understand this target audience’s pains, desires, and desires.
In this way, your company will be an expert in that audience and thus achieve a much greater prominence among them.
Domus, for example, has Nomus ERP Industrial, an ERP system that differentiates itself from the others as a specialist in industrial management.
It was born on the factory floor and was designed by production engineers precisely to meet the pain and complexity of managing industries.
Another way to build a competitive edge is to be the market leader. That is, offering something that no one else offers in that region.
You can start by being the leader of your neighborhood, for example. For this, your company will need to offer products or services far superior to those existing there.
Another alternative is to offer a product or service that does not exist in the region. That way, you will be at the forefront of that market.
To close, customer service is a point that often ends up being neglected by several companies, but it can be a valuable competitive differentiator for yours.
Today’s consumers are used to attentive service, and if your company goes further, you will undoubtedly have a competitive edge.
Some Suggestions To Improve The Service In Your Company:
- Standardize service and train your team;
- Conduct customer satisfaction surveys;
- Set goals for your team to always seek to improve service;
- Overdelivery, that is, add unexpected gifts and bonuses when delivering your product;
- Offer different service channels.
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