fbpx

List of Competitive Advantages

(How To Beat Business Competition)

A competitive advantage in business is what gives your business an edge over its competitors.

A competitive advantage is any reason you can think of that will help you get more business than your competitor.

Because competition can make or break your business, it’s important to always pay attention to your competitors and their business model.

It’s only by doing deep market research that you’ll be able to see the flaws of your competitors, which in turn help you get an advantage over them.

Let’s start with the list of competitive advantages in business.

List of Competitive Advantages

We often see ‘’upcoming entrepreneurs’’ as they call themselves stuck at the starting point.

They’re spending a ton of time brainstorming, planning and trying to find the ‘’perfect’’ idea.  Because of this, many entrepreneurs quit, before they even start.

They come up with an excuse that they’ve no ideas for a new service, app or product.

The funny thing is that there’s absolutely no reason for them to reinvent the wheel.

Instead of trying to create something new, take a business model that’s already working and improve upon it.

Take a business that’s doing solid, but still has many errors.

These errors are your chance to win big. If you can spot the weaknesses of a business, that’s your opportunity for success.

But how can I gain a competitive advantage over the competitors?

There are limitless ways to do so, on the internet you’ll find whole lists of 40+ suggestions to gain an advantage over your competitors.

But again you don’t have to have 40 advantages to win.

There are 3 main categories of competitive advantages:

 

  • Speed and responsiveness,
  • Quality,
  • Price.

If you can find a market that has a weakness in any one of these 3 areas, you’re looking at a great opportunity.

If you manage to find 2 categories to improve upon, you’re looking at a potentially great business.

But if you manage to find all 3, you hit the jackpot.

Let me explain each one of the competitive advantages.

List of Competitive Advantages

Speed and responsiveness

Think about Uber, what is their business based on?

It’s based on saving customers time, Uber sells time.

No more waiting around and going through the trouble of finding a cab, Uber solved it all.

You press a button and the car arrives to pick you up.

By improving a product or service in a way that delivers the result to the customer faster and with less hassle, you’re off to a good start.

Quality

Why do you pick a $1000 smartphone, instead of the $300 one?

You prefer quality, you want things to work and you never want to be disappointed.

We will always prioritize the quality of a product/service, even if it costs a bit more.

Price

This third one works nicely by itself. When you offer the same service for a more affordable price, you’ll naturally have a competitive edge over your competitor.

But here’s the catch.

If you do offer a lower price, you must be absolutely sure that you’re not sacrificing the quality of your service because of it.

Earlier we mentioned how we will always prioritize the quality over the cost. This is why you need to make sure that you’ll be matching your competitors quality or even top it before you lower the prices.

How To Gain a Competitive Edge in Business

 

Pick a niche and research your business competitors

After picking a niche you need to research the quality of service/product your competitors are providing.

This is as simple as opening up Google and searching for a few different phrases matching your niche.

Try to think in terms of your target customer. What would they type if they wanted to come across your specific niche?

Do a bit of browsing and make it your goal to write down 3-5 of your competitors (or how many you may find).

Brainstorming the Perfect Competitive Advantage

This is where things start to get fun.

I want you to take a piece of paper and write the name of the competitor #1 at the top.

Then open up one of the review sites.

If you’re in the product niche, search for the product on Amazon.com.

If you’re in the service niche, search for the service with Yelp or Google My Business.

Then you want to head over to the reviews section and go through every single review you may find.

business advantages and disadvantages

Divide your paper into 2 sections, write advantages on the left and disadvantages on the right.

As you may have guessed it, you’ll now go through all the reviews and write the positives and negatives accordingly.

Do this for all 3-5 competitors that you wrote out earlier.

Don’t Try to Reinvent the Wheel

Now that you have a list of all advantages and disadvantages based on the customer reviews, it’s time to sharpen your blade.

It’s time to create a competitive advantage for your business.

As I mentioned before, this is not about reinventing the wheel and coming up with some crazy new service as Uber did.

It’s quite simple actually.

Take all the notes you wrote and put together a business, one that will lead to the ultimate satisfaction of your customers.

Don’t CHANGE what’s already working for your competitors, take what’s not working and improve upon it.

Improve it in a way that will lead to better:

 

  • Speed and responsiveness,
  • Quality,
  • Price.

If you manage to improve upon 2 of these areas you’ve got a solid business idea, if you manage to improve upon all 3, you’ve hit the jackpot.

Businesses with a Value-Based Competitive Edge Always Win

Entrepreneurship is not hard, it’s just a lot of thinking and work.

In order to win as an entrepreneur and make your business a success you only need to focus on one thing.

VALUE.

If you can provide more VALUE, faster, better and at a better price than your competitors, you’ll inevitably win.