How To Gain Competitive Advantage
Let’s face it every business wants to gain a competitive advantage over the next. The way to do this is with business-level strategy. Business-level strategy is an integrated and coordinated set of commitments and actions that your company can use to really exploit a core competency your company has with a specific product or serve. To determine your business level strategy you need to evaluate your company. As you take an honest look at your company what are the capabilities and resources that your company has over your competitors? Once you have identified this then you can create your business strategy. Business strategy is when you determine the actions you need to take to gain a competitive advantage in your market or niche.
Business level strategies are concerned specifically with the actions you need to take that will provide value to your customers while helping you gain a competitive advantage as you exploit the core competencies with your individual, specific product markets or services.
Determining your business strategies happens when you look at what services or products you need to offer to which specific types of customers and you know how you will create the product or service and how you will bring that product or service to the marketplace. Strategies are what create the differences between your company’s position and your competition. You have to decide how you will be different. Is it by low cost? By what you sell? By the types of value and outcomes, you create?
Strategy, Business, Decisions
You need to determine your strategy for business and make some decisions. One that you must make is where you sit in relation to cost. Are you going to be the cost leader? Cost leaders produce their products or services at a low cost compared to their competitors with features that are acceptable to customers. This gives the company the position of being the lowest price in a market or niche. Another point of differentiation and uniqueness is taking on a different position in the market and not striving to be the lowest cost. Some examples are – Amazon.com with one stop shopping, Dr. Pepper having a unique taste, FedEx being dependable and reliable, Rolex representing prestige, Honda standing for quality.
You can choice a focus strategy that target’s the differences between your company and others by appealing only to a specific set of customers or only to a unique segment of your products or services or you can concentrate on a particular geographic market or special niche.
The best business strategy is an integrated cost leadership/differentiation strategy because then your company can quickly adapt to environmental changes and learn new skills and technologies more quickly and effectively leverage its core competencies while competing against your rivals.
Which business strategy are you going to pick? Want to spend 10 minutes having me help you determine the right one? Schedule a 10-minute complimentary chat here.