The “Competitive Advantage” (Project competitive advantage) is one of the most important elements of the success of startups because it is the characteristic that makes your company able to continue and survive in light of the strong competitiveness between companies.
And the well-known American website Indeed published a report written by a group of experts, in which they talked about the importance of competitive advantage and how it can support your business. They pointed out that without the competitive advantage, your project does not have a strong reason to continue, because it is the factor that supports the project’s distinction from others, and allows you to provide a better or cheaper and better product or service at the same price in the market, which helps you achieve more sales and profits.
Types of project competitive advantages
The report indicated that there are many competitive advantages of the project that can be considered strengths and difficult for competitors to imitate, and make the project more sustainable, the most important of which are the following:
Price competition
This comparative advantage is the best advantage of all if you can provide services that are equal to the competitors in terms of quality. But once your competitors notice you’re offering a lower price, it’s very easy to lower their prices to get them competitive again.
Competition for the speed of service provision
One of the easiest ways to attract your customer’s loyalty is to provide the service they want at the right time and at the required speed, specifically in financial technology companies, insurance companies, or home services. This requires quick and direct communication with clients, and a high ability to adapt and work under pressure.
Competition for quality
Quality is the best that the customer seeks, and a startup company can prove itself quickly through the competitive quality advantage of the project.
How do you achieve the competitive advantage of your project?
In a recent report by Investopedia, authored by Alexandra Twain, she discusses the key strategies to establish a robust competitive advantage for your startup. These essential methods include the following:
Reliance on technology
The introduction of modern technologies and technology in your project ensures that it will continue to compete and not leave the market, in addition to attracting customers and facilitating dealing with them. The use of smart applications helps increase customer loyalty to you, make them more connected to your project, and increase sales.
Understanding customer mentality
You must understand the characteristics of the target segment that deals with your business.To be sure of this, you must answer the following questions:
- What kind of companies will you want to do business with and buy from?
- If you provide services to individuals. What are the characteristics of the target audience? men or women? Young or old?Married or not married?
- Do they live a small or large distance from your location?
- What is their average income and savings?
- Can you target a different audience than your competitor’s customers?
Answering these questions will be the cornerstone of all your marketing and promotional goals.
Adaptability
If you can adapt to your competitors and continue despite market changes, this is a significant competitive advantage that helps you ensure the continuity of your project and distinguish it from others.
Work to reduce costs
Reducing costs is one of the most important strategies for achieving the right competitive advantage because, in the end, it helps you to offer your product at a lower price.
