What is competitive advantage and why should I know it?

Competitive advantage is the fundamental characteristic of a company that makes it different from the rest of its competitors and, therefore, gives it a clear superiority among consumers.

The activities carried out by a company are part of its own competitiveness. In other words, they depend on the industrial sector in which they are immersed.

Currently, we could speak of market saturation: more and more companies are dedicated to offering or selling the same service or product, which represents a real challenge to highlight the competitive advantage. However, for those who are avid entrepreneurs, this can be found even in the details.

If you are thinking of starting out as a young entrepreneur, you may want to consider the following tips on how to gain a competitive advantage effectively.

Original or innovative product. If a product or service offered is innovative, it is therefore difficult to imitate. Then, the customer knows perfectly well that nobody else than a certain company offers that product and that is why it is worth acquiring it. This detail makes the big difference between one company and other competing companies.

Brand effectiveness. Some companies cannot make sure that their product is completely new in the market, but they can make sure that their brand is well positioned. Why is that product sold, why buy it from one company and not from the other, which perhaps sells it a little cheaper? For this, some resources are invested to make the brand known, in such a way that its quality, value and position in the market are made clear.

Modern technology or infrastructure. Through the new tools offered by technology, it is possible to better approach the new forms of communication. For example, an internal system or database with essential customer information, orders or recurring searches, helps to know what exactly they are looking for from the product. In addition, having a modern infrastructure in terms of electronic or technological devices facilitates the work of a company’s human capital.

Production processes. Obviously, it is important to establish the points of sale or distribution of the product in question, so in order to have a competitive advantage it is always necessary to carry out a market study, which will indicate where it is best to offer the product or service, depending, even, on the sector to be approached.

Customer service. This detail can make the big difference between companies. The one that gives value to the opinions, suggestions or comments of its customers is much more reliable and more recognized. Currently, customer service is one of the values that most companies seek to cover for the benefit of their business. Having friendly, efficient and trained human capital to meet customer needs is one of the most effective and intelligent competitive advantages of companies in the 21st century.

Knowing the concept of competitive advantage is very important for young entrepreneurs, who will be the future business leaders. It is essential to know and recognize that companies are constantly changing, often in relation to the economy, so it is essential to stay informed about the most necessary business techniques.