Running a business sounds lucrative and is what most people aspire to do. The idea and imagination of leading a successful business are usually romanticized by our history, media, and literature. But, the dynamics of leading companies are not a bed of roses. It requires a strong will, competence, determination, patience, and hard work. Operating a business means overseeing multiple domains at the same time to find competitive advantages. Typically, every company manages manufacturing, product or service acquisition, human resources, finance, marketing, administration. Additionally every domain has its own set of complexities, criticalities, and challenges to manage.
On top of it all, every business feels the heat of surviving and thriving in the world of competition. Companies need to compete with fellow corporates, small-medium enterprises, and entrepreneurs in the same domain. The rivalry stretches the efforts, product margins, profitability, and overall existence of the businesses. In addition to that, technology and automation have infused another layer of competition. Today, not only your competitors but technology can either eliminate the need for your product/service. Or it can even change its form so that it doesn’t remain a healthy venture for you. For example, the newspaper printing business got a severe downfall in their demand by introducing the internet and online news websites.
Therefore, it is essential and crucial for every business to gain a competitive advantage to thrive in the market. As well as extending the business growth to the next level. Let’s take a look at some of the ways through which a business can attain them:
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Attract and Secure the Best Talent
This fundamental strategy applies to every industry irrespective of the nature and domain of the business. Your employees mainly run your business and represent it. The key is to develop and maintain such a culture of respect and a competitive work environment that the top talent gets attracted and retained at your workplace. Companies get creative in acknowledging and appreciating their human capital. By offering perks, promotions, organize ceremonies regarding corporate awards, seconding to challenging projects, you can retain that talent. Also, consider advertising on specialized job boards, like a cannabis job board for CBD production positions. However, the basics are crucial and a “must” for any business. By getting the best people, you can secure their experience, precision, and insights about the industry and market. Usually, competitors remain in the hunt to poach critical people from their rivals to get a competitive advantage from your business.
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Identify and Dominate in the Niches
Gone are the days when providing the most variety and general availability was the advantage. Today, the internet is a global shop for any customer around the world. Similarly, the customer is more aware, knowledgeable, and expects exclusive quality. In addition, general variety leads to low margins, whereas niche products and services are slow but enjoy significant margins. There are many examples of luxury brands that deal in a specific product category and limit themselves in certain customer categories with limited supply. In this way, they can create an exclusivity mindset in their customers, which caters to their demands in a customized manner. The brand ‘Supreme’ is a great example of this. Similarly, some software and services companies operate on the same model and earn millions by targeting smaller audiences but getting good revenue.
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Create Loyalists By Delivering Great Product and Services
This strategy is about “Dominating the Niche.” A niche can give you competitive advantages and build brand awareness. Usually, companies operate on two approaches. The first one focuses on generic offerings and generic business operations, which is how conventional businesses operate. However, the second mindset is of exceptional quality, excellent feel, and best customer experience.
Instead of considering your product and customer generic, great businesses perceive their products as art and their customers as their fans. They provide products and services designed and built with understanding about the customer, best available resources, and great detailing to perfection. In this way, companies attract customers in a different way altogether. Businesses like Apple Inc. enjoy customer loyalty to the next level. Their customers crave for the product releases and never compare or consider competitors’ products in any way. Therefore, it is crucial to go high on providing a unique value proposition to outdo the competition altogether.
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Sleeve up your Game Through Technology
Well, if there is only one strategy allowed to up your game in the 21st Century, it would be seeking technological advantage. Technology is no longer a growth accelerator but a defining and deciding factor among the competition. The immense computing power and emerging technologies like Data Sciences, Artificial Intelligence, Big Data, Cloud Computing, etc. are available at businesses’ disposal. The amount of data and the ability to analyze it can unveil the blueprint for the next product, marketing strategies, and financial skills.
Today, businesses like Amazon.com dominate their presence and outdone competitors by tapping into new product lines based on customer preference data. Similarly, through Facebook Ads, you can target your potential customers. Facebook allows you to deepen the reach based on geography, age, interests, political views, etc. Through cloud computing and blockchain technology, businesses can cut their costs of holding inventory, physical data storage, and hefty data storage centers. Such possibilities are now available to gain cost-cutting, sales maximization, and enhance profit advantages over competitors.
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Unique Branding and Marketing
As Seth Godin said, “People don’t buy the product, they buy your story.” Any business must have a unique place in customers’ minds and hearts. It is an element that urges people to ignore their competitors’ products and services. There are many examples where people disregard better offerings for relevant brand identity like Dollar Shave Club. There are many better grooming kits available in the market, but people opt for it because of its witty and clever branding. Similarly, a customer also looks at the social footprint of companies that affect their buying decisions. People admired Apple Inc.’s stance on data privacy when other companies were selling and manipulating users’ data. Therefore, you can also gain significant competitive advantages over your competitors through the mindful and right marketing medium.
Conclusion
As discussed, it is always the right time to think and focus on gaining competitive advantages, as the possibilities and technologies are closing the gap between competitors. In such times, the first and foremost key is to cultivate the growth mindset in your company culture. And based on that, identify, try, fail, and adopt the right strategies which are relevant and useful for your business, stay away from the trap of overdoing, and trying out standardized practices.