Apply Competitive Advantage In Your Company
One of the most important things you can do as an entrepreneur is to understand your competition and exploit their competitive advantage. You will find that your competitors are also trying to find ways to differentiate themselves from the competition. Many people say that the key to being successful in business is finding out what your competitors are doing wrong and then attempting to take some of those lessons to improve upon it. However, there comes a time when you need to stop reinventing the wheel and start implementing what already works. Learn how to leverage your competitive advantage by following a few tips.
Leverage your core competency
and create multiple streams of revenue. Many large companies have found that establishing separate ventures for products like phones, smartphones, tablet computers, digital enterprise services, and other key areas of its core competency, enables the company to focus on each of these areas while reducing its overall costs and operational overhead. You can leverage your core competency to gain more market share in each of these areas while making operating and maintenance savings. This is accomplished by establishing multiple partnerships with various partners in the area of your core competency.
Create more than one revenue stream.
When you look at what your competitors are doing, you will quickly see which areas they excel in and which they struggle in. By creating more than one revenue stream, you can leverage both the strengths and the weaknesses of your competitors while providing your customers with a wider range of offerings. As you can see from the examples above, by providing different but closely related products and solutions, you can gain a competitive advantage and increase the value of your offering while also making it easier to recognize your brand and customer base.
Build a strong strategic action plan.
A solid strategic action plan gives your company direction and outlines its purpose, objectives, and measures of success. You must map out the details so you can make important decisions regarding business strategy that can affect the overall direction of your company. You should always have a well-developed strategic action plan in place, even if your company is growing as a whole. You can use swot analysis to help identify the strengths and weaknesses of your competitors.
Define your partner’s business proposition.
Partnering with your competitors allows you to get close to your customers and gain access to their purchasing power. You can use your partner’s business proposition to help you define the benefits you can offer your customers to gain an upper hand in the market. In addition to defining your partner’s business proposition, you can then use this information to develop new offerings and use these offerings to drive more sales.
Leverage your go-to-market strengths.
The strength of your company’s offerings should be the driving force behind your strategies. However, if you want to take advantage of your suppliers’ offerings, you will have to leverage your suppliers’ strength. For example, if your company is known for providing affordable products, but your supplier offers high-quality products at a relatively low price, your strategy may be to build a distribution system that is dependable and consistent, but one that is less than 100% dependable on specific products. By leveraging both your strengths and the strength of your suppliers, you can create an effective distribution network and increase your share of market share.