What is the role of IT in gaining a competitive advantage? If your service advantage is based on a few simple factors (like longer hours), your competition can easily replicate it. By Gordon Tredgold @gordontredgold. Mastering the game and winning is never the end in the world of business. If you really can’t stand to see another ad again, then please consider supporting our work with a contribution to wikiHow. Examine how your workers are producing as well to make sure they are not wasting resources and that they are producing as much as possible. The only way to maintain advantage in markets where the technology evolution and/or market penetration are rapid is to identify and maintain a consistent vector of differentiation that … This article has been viewed 515,200 times. ", How to Gain a Competitive Advantage in Business, http://www.forbes.com/sites/tanyaprive/2013/08/16/how-to-build-a-company-that-warren-buffett-would-invest-in/, http://study.com/academy/lesson/types-of-competitive-advantage-cost-product-niche-sustainable-advantages.html, http://www.wordstream.com/blog/ws/2017/02/21/features-vs-benefits, ganar una ventaja competitiva en los negocios, Ganhar uma Vantagem Competitiva nos Negócios, Mendapatkan Keunggulan Kompetitif Dalam Bisnis, امتلاك الميزة التنافسية للمشاريع التجارية, consider supporting our work with a contribution to wikiHow. This may be lower cost, faster service, better customer service, more convenient location, higher quality, or other factors. How can a small restaurant gain a competitive advantage using basic bookkeeping methods? The average consumer is susceptible to price, so reducing your price while maintaining quality products and services is an excellent way to create a competitive advantage. By using this service, some information may be shared with YouTube. If you own a restaurant, for example, purchasing energy-efficient equipment can reduce your operating costs. For more resources from our Financial reviewer on how to reduce costs so you can offer lower prices, keep reading. ", "The article assisted me in my strategic management assignment. It is important to create a culture of excellent service. Keep good company and surround yourself with smart people. For example, if you are in the restaurant business, and you spent three years overseas studying cuisine, you can use your experiences and contacts there to establish truly unique recipes. Knowing your competitive advantages as a founding team and venture is key to securing funding as a startup. It is the force that enables a business to have greater focus, more sales, better … How can a mobile company in Africa with 30 percent market gain competitive advantage over competitors? Mastering the game and winning is never the end in the world of business. Detailed customer knowledge is equally important as competitor knowledge. Maintaining a competitive edge is business is essential to long term success. 3 Things Your Business Must Do to Remain Competitive It's harder staying at the top than it is to get there. Sometimes you may need to take chances to keep ahead of the pack and differentiate your business, but with big risk often comes big reward. As the world hurtles towards the incorporation of everything being digital, IT jobs are important to make sure that your business can reach its customers in the most efficient manner. Business competition can be fierce, especially in markets with aggressive competitors and when customer spending is slowing down. You'll need to first determine exactly what quality means in a particular market. But in today’s world, there’s no such thing as certainty. And these same people can help you tap new, exciting opportunities you would otherwise never know existed. wikiHow marks an article as reader-approved once it receives enough positive feedback. CEO Ram Tumuluri ‘An entrepreneur must constantly improve and do better! What are the key factors to success for a plastic manufacturing business that I want to start? Thanks so much! Instead of trying to copy your competitor's advantages, strengthen your own to create a unique set of strengths that cannot be replicated. A small business can gain a competitive advantage by minimizing production and related costs, resulting in reducing the price to the level that other competitors will not be able to match. What businesses should do in order to stay ahead of competition? Assembling the assets and attributes of the company and preplanning the economic year ahead will not only ensure a competitive edge in business plan but also endows a sustainable competitive advantage, which makes the company stand out amongst its key competitors. ", "I like this article on the competitive edge. A competitive advantage is simply a factor that distinguishes your business from others and makes customers more likely to choose your product over the competition. Successful Businesses maintain competitive advantage … Simply because the consumers are getting environmentally-conscious and the future lies in the social impact of the business along with commercial success. As markets change every day, focus on a strategy that is flexible and helps your business be competitive. Motel 6 has sustained competitive advantage for over 50 years by focusing on budget-conscious consumers. Expand your services and you will not only earn more income but increase your client base too. Hiring better staff, improving training standards, managing staff closer, offering rewards and incentives for strong service, and offering more convenient hours of operation can all help generate an advantage. The areas of strength that you have are the areas you should focus on expanding. Likewise, you must mix with mentors and peers capable of raising you to higher levels. Creating a competitive advantage involves analyzing your business's strengths and those of your competitors, and then learning how to take advantage of these factors. A competitive advantage is the recognition that a company either delivers quality products at a lower cost than the competition or offers support and services at a greater value than the competition, according to the Quick MBA website. Firms that enjoy a culture of aggressive change, positive teamwork and innovative spirit tend to maintain and build upon competitive advantages. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/9\/9b\/Make-Yourself-Happy-Step-11.jpg\/v4-460px-Make-Yourself-Happy-Step-11.jpg","bigUrl":"\/images\/thumb\/9\/9b\/Make-Yourself-Happy-Step-11.jpg\/aid425611-v4-728px-Make-Yourself-Happy-Step-11.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"