1. Review your core strengths. Once you have identified your core strength areas, you can add to those using s
several market strategies to build a competitive advantage, or to create new areas of advantage.
2. Reduce costs. Cost reduction is one strategy that businesses can pursue to gain a competitive advantage, or to add to their advantage. Most markets have price-sensitive consumers, and being able to offer your product or service at a lower price is a certain way to create value for your customers. Wal-Mart, for example, has a competitive advantage due to its ability to provide low prices.
3. Focus on service. In your particular market, service may be a key factor that differentiates competitors. If your business already has a strength in service, consider doing more to focus in this area.
4. Focus on product or service quality. If you cannot compete with your peers on location or on price, for example, you can always compete on quality. This is even more true if high quality is one of your strengths. Customers will often pay more or go to greater lengths for an exceptional product.
5. Differentiate your products and services. Look for one or more marketable attributes that you have that can set you apart from your competitors. Then find the segment of the market that finds those attributes important and market to them. For example, do you have the longest battery life? Frequent travelers need this. The lowest price? That’s important to lower income customers. Free shipping? If you are the only one offering this it could attract new customers.
6. Form an alliance with another company. Forming a partnership or alliance with another company can be an excellent way to gain a competitive edge. For example, assume you are a local equipment supply company. You could approach a local transportation company and offer to provide them with a discount on products in exchange for quicker or more preferential local transportation. In doing so, you can offer your customers their products in a shorter time frame than your peers, providing you with a competitive advantage.