The Advantages of Being a Strategic Competitor
A rule in business is that if you don’t have some form of advantage at critical strategic points, you do not compete.
In today’s business world, more is needed to be a competitor. To be successful, you must be a strategic competitor. A “strategic competitor” is a company that has an advantage at critical points. In other words, a “strategic competitor” is a company able to identify opportunities in the marketplace.
There are three main advantages to being a strategic competitor:
- Access to resources – When you are a strategic competitor, you have access to resources that allow you to exploit market opportunities. These resources include market intelligence, capital, and distribution channels. There would always be an “association” advantage as people lean towards success, familiarity, authority, and position. That is simply a rule in business.
- Superior execution – Being a strategic competitor allows you to execute your plans faster than competitors. Put it this way, if you can access what is needed when it is needed and you know that processes established almost guarantee results, you will do it no matter what. This better execution can come from a deeper understanding of the market, better processes, or operations that work well and efficiently.
- Ability to change course and adapt to new realities – Finally, being a strategic competitor allows you to change course quickly when necessary. This agility enables you to adapt to changes in the marketplace quickly and exploit the “first mover” advantage when it makes strategic sense to do so. Financial backing and human resources combined, create wonders.
You need some form of advantage at critical strategic points to compete.
There are many ways to gain an advantage. Some people may think having the best product or service is the only way to succeed. Other factors come into play when businesses are vying for market share; one of these is having some form of advantage at critical strategic points.
To succeed in business, it is vital to identify where you have an advantage over your competitors and then focus your efforts on those areas. There are various ways to gain an advantage at critical strategic points.
Advantages can be found in many different aspects of a business, from the product or service itself to how the company is run internally to how it interacts with customers or clients. It is important to find and focus on things that will give you an advantage in the future or strategies and tactics that will change the game right away. Below are three examples of how companies can take advantage of their opponents at critical junctures:
1) Higher Quality Product or Service
In order to beat your competition, you need to offer a higher quality product or service than they do. This can be something as simple as offering a better warranty or guarantee, offering more features or benefits, or having a more user-friendly interface. Whatever sets your product or service apart from your competitors, highlight it prominently and make it easy for potential customers to see.
2) Effective Targeting
Another way to take advantage of your competition is by focusing on how you reach and interact with your target market. If you can get more potential customers than your competitor through effective marketing and advertising, you will have a leg up on them in the race for market share. Additionally, you can establish better relationships with your customers; in that case, they will be more likely to continue doing business with you and refer others to you.
3) Weaknesses in Competitor’s Business Model
Probably the hardest way to take a strategic advantage is by identifying and exploiting weaknesses in your competitor’s business model (at the critical strategic points) and using them to your benefit. If certain aspects of their business could be running more smoothly, and efficiently, or providing more value for the buck, then you can step in and fill that gap in the market. You can also use their weaknesses as a way to differentiate yourself from them in marketing and advertising materials.
To compete effectively, there must be unshakeable confidence in your own abilities to create more value than currently exists, to believe in your abilities to transfer it, and to paint the picture in the prospect’s mind that your solution is in their best interest. That’s it. There is nothing more to the equation.
Even if no one else sees it that way or believes in your abilities. Even then, you need to believe.
Why is having an advantage important?
There are many reasons why having an advantage is vital in business. Perhaps the most important reason is that it allows you to differentiate your business from rivals and subsequently position yourself favourably in the hearts and minds of potential and current customers. If you can offer something that others cannot, you’ll be more likely to attract and retain customers.
A competitive advantage allows you to attract more of the ideal customers.
If you have a competitive advantage, it’s likely that more customers will be interested in what you have to offer. They’ll see that you’re offering something that’s unique or better than what your competitors are offering, and they’ll be more likely to give you their business. With the expanded pool of customers, there will be an opportunity to be more strategic in selecting offers, services, and deliveries. You’ll be able to segment the base and specifically target those that fit the “ideal customer” profile. This can help you specialise, cross-market, and focus on the most profitable and rewarding group. This strategy will increase revenues either through an increase in the number of customers, an increase in the value of the average transaction, or an increase in the frequency with which they interact with the business.
A competitive advantage can help you build brand loyalty and elevate the brand
Another key reason why having an advantage is important is that it can help you elevate and multiply the brand’s value. If you can offer a better product or service than your rivals, you’ll be able to expand, reach out, and secure market share from them. This is especially important in highly competitive industries where every percentage point of market share counts. I’d like you to consider the lifetime value of the average customer and multiply in your spare time what brand value and market positioning mean to it.
If customers see that you offer something unique or better than your competitors, they’re more likely to be loyal to your brand. They’ll keep coming back to you for your products or services, even if they’re available elsewhere. This loyalty can lead to repeat business and long-term growth for your company.
Brand equity commands higher prices and better margins
Therefore, having an advantage can also help you build brand equity. Customers who perceive your business as being better than the competition are more likely to think favourably of your brand. Over time, this can help you charge higher prices and retain more, as customers will be willing to pay a premium for a brand they trust and identify with and for something that they perceive as being of better quality or more valuable. This can help you increase your margins, make more money, and make sure your referral program works. Subsequently, business expands according to your expectations.
My summary
A competitive advantage is essential for any business that wants to succeed in today’s market. If you don’t have something that sets you apart from your competitors, it will be difficult to attract customers, charge higher prices, and build brand loyalty. For all the reasons above, it’s important to identify what your competitive advantages are and make sure that they are central to your business strategy.
Your core is your advantage, and your advantage is in your core if you prioritise strategically what you do best as the cornerstone of business strategy.
Offer something unique or superior to what your competitors are offering, you’ll be well on your way to achieving success in your industry. You’ll be in a good position to compete against even the most well-established businesses in your industry if there is a significant point of difference that is perceived as better value for resources invested.
Keep this rule in mind next time you’re planning your business strategy—if you don’t have some form of advantage at critical strategic points; do not compete head-on with the major players!