Competitive advantage and company positioning: Keys to success
Posted: Mon Dec 23, 2024 9:48 am
Do you know why companies are eager to gain that advantage to position themselves in the market ?
If you have asked yourself these questions, be sure to read this post in which we will detail everything about competitive advantages and the best way to take advantage of them. To know how to take advantage of this quality, we must first look at its definition.
What is a competitive advantage?
A competitive advantage is the unique characteristic that a company, organization or person has over its competition and differentiates it within the same market , placing it in a better position to compete.
This competitive advantage places the organization in a position of superiority over the rest, giving it a privileged position in the market.
A competitive advantage can be any aspect that makes an organization more competitive than others, thus offering greater value to its customers.
Types of competitive advantages
If we look at the theory that Michael Porter formulated decades ago, we will find the main types of competitive advantages.
1.- Competitive advantage through differentiation
In these cases, the brand in question acquires a competitive position thanks to its product specialization.
They are usually high-quality and very exclusive products, which make the customer feel lucky to be able to buy them.
They tend to have high prices, further marking this differentiation.
2.- Competitive advantage through cost leadership
The company that enjoys this competitive advantage produces its products at a lower cost.
When several companies try to boast this advantage, the results in the market are often email list of switzerland businesses disastrous.
For this reason, there are not many companies that stand out for their cost leadership.
3.- Competitive advantage by approach
The competitive strategies of a company seeking advantage through focus are based on a specific sector.
They seek a specific market and specialize in being the best in that segment, either by geographic area, type of product, etc.
If you have asked yourself these questions, be sure to read this post in which we will detail everything about competitive advantages and the best way to take advantage of them. To know how to take advantage of this quality, we must first look at its definition.
What is a competitive advantage?
A competitive advantage is the unique characteristic that a company, organization or person has over its competition and differentiates it within the same market , placing it in a better position to compete.
This competitive advantage places the organization in a position of superiority over the rest, giving it a privileged position in the market.
A competitive advantage can be any aspect that makes an organization more competitive than others, thus offering greater value to its customers.
Types of competitive advantages
If we look at the theory that Michael Porter formulated decades ago, we will find the main types of competitive advantages.
1.- Competitive advantage through differentiation
In these cases, the brand in question acquires a competitive position thanks to its product specialization.
They are usually high-quality and very exclusive products, which make the customer feel lucky to be able to buy them.
They tend to have high prices, further marking this differentiation.
2.- Competitive advantage through cost leadership
The company that enjoys this competitive advantage produces its products at a lower cost.
When several companies try to boast this advantage, the results in the market are often email list of switzerland businesses disastrous.
For this reason, there are not many companies that stand out for their cost leadership.
3.- Competitive advantage by approach
The competitive strategies of a company seeking advantage through focus are based on a specific sector.
They seek a specific market and specialize in being the best in that segment, either by geographic area, type of product, etc.