In today’s highly competitive and dynamic business environment it’s quite essential to stay relevant to gain a competitive edge. Whether you are a budding entrepreneur or an established business you need to identify the contemporary trends to stay in the market. Competitive advantage does not mean only just being better but also being different in your way. This guide shall delve you into the guidelines which are required to be followed to gain a competitive advantage in your industry.
Gaining a competitive edge in a market is not a child’s play but is also not a herculean task. with the right approach . You need to strategize your moves to capture the market.
Consider adopting these impactful strategies –
- Cost Leadership – Streamline the production to alleviate cost and improve efficiency. This may be done by producing the product in huge volumes
- Stand out in the market by offering unique product features, exceptional quality and innovative design. This must be coupled with outstanding customer service to enhance your overall value proposition.
- Market Niche Specialization – This means to focus into a specific customer segment to meet their unique demand and preferences. So identifying such a market can give you an advantage. You may establish your monopoly because not every company may target it.
- R&D – Invest a part of your annual budget into research and development. Through this you may discover a new technology altogether and will stay ahead of your competitors in the market which will give you a competitive edge.
- Brand Building – Your brand is your identity and therefore it is imperative for you to build a robust brand to make loyal customers. The brand is a reflection of your quality work.
- Customer Focus – Identify the problems customers are facing while availing a service or using some product. Jot down all those problems and try to get a path breaking solution for that. This will enable customers to focus upon you and your brand will be ahead of everyone in the market.
- Talent Acquisition and Development – To prioritize business growth and innovation consider acquiring young and dynamic talents. Fresh perspectives and dynamic ideas from young minds can drive innovation, helping your business stay ahead of the competition. Focus on nurturing their potential to align their creativity with organizational goals.
- Employment Engagement – Investing in the training of employees always proves to be beneficial for a business as it serves dual purposes. First it will train your employees to foster a positive work environment and second will add value to your business.
Innovation and technological development drives competition. To gain a competitive edge, there are several things which one needs to keep a note of. Sometimes businesses are running behind because they fail to comprehend the dynamics of the business environment or fail to reach out to their potential clients. This culminates in shutting down their business.
Following things are things which you need to take care of –
- To stay updated with the market, one needed to understand and analyse their competitor’s moves. Your competitor is not just your competitor but your teacher as well. Decode your competitors moves and strategies and most importantly learn from their mistakes.
- Adaptability – to achieve competitive advantage, you need to change your business model and thinking with the changing market trends and customer preferences. Failing, to do so your business will struggle and eventually you will be wiped out from the market.
Apple and apple products have made a huge customer base in and outside India. This was made possible primarily because of the strategic product differentiation. This is mainly done by innovative design, brand imaging and perception, strict quality control, and most importantly Apple invests huge sums in research and development. This enables them to consistently improve the existing technology and introduce new technology in the market which helps them to stay ahead of their competitors.
Elon Musk’s company Tesla has gained competitive advantage fundamentally through its persistent innovation especially in electric vehicle technology, battery development and autonomous driving. Coupled with direct sales model and branding imaging and marketing.
On the other hand, Nokia who was once immensely popular worldwide failed to achieve competitive advantage. It failed essentially due to its slow adoption to the smartphone resolution. This was coupled with poor marketing and branding, lack of innovation, poor leadership and failed to realize customers changing preferences. On the other side, its competitors like Apple with iOS and android based phones were quick to adopt and rapidly gained market share.
Conclusion
Achieving competitive adage in your industry requires a strategic planning blend with continuous learning, innovation, research & development with an aim to deliver value to the customers. By sharpening your strengths and working upon your weaknesses, you can capture the market and position yourself ahead of competitors.
