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Tuesday, March 12, 2013

Why You Need a Competitive Advantage

A successful business follows one core marketing concept: "Find a need and fulfill it." However, there may be many players offering similar services and products in your field. This is where having a competitive advantage can lead you to the top.

To be in the top 10% of your field, you need more than just a competitive advantage. You must also communicate that advantage loud and clear through everything you do. If the prospect doesn't understand your advantage then you lose to a competitor who markets better.




  1. Being the Cost Leader: offering lower prices than your competitors by providing a reasonable value while still making a profit. Wal-mart is one company that's famous for this strategy, but Costco may have mastered it even better. Low prices are in Costco's DNA and have become the company's competitive advantage. Costco still charges just $1.50 for a hot dog and a fountain drink. As prices increased, Costco began manufacturing its own hot dogs in order to keep the prices low. Massive buying power and a super-efficient distribution system, coupled with a lower-overhead warehouse business model, have allowed Costco to remain a leader with this strategy.

  2. Differentiation: providing products and services that stand apart from your competitors. This strategy involves creating a brand that clearly communicates how your company delivers value in a way others can't match. The result is a product or service people are willing to pay more to receive. Starbucks has mastered the art of charging higher prices than its competitors by selling more than coffee. The company sells a brand and overall coffee-buying experience others can't duplicate. Buying a Starbucks coffee includes the atmosphere the company creates for its customers. It's an added value the company's thousands of locations "sell" and which customers continue to buy into every day.


Where does your business fit in these models?

If you haven't defined your competitive advantage or aren't clear what it could be, first answer these questions to help refine your search.





Once you've found your competitive advantage in the marketplace, it's time to communicate that advantage in every marketing piece and everything you do until it becomes a part of the DNA and culture of your company.

Peter "The Printer" Lineal
Plum Grove
2160 Stonington Avenue
Hoffman Estates, IL 60169
Ph: 847.882.4020 Ext: 133

Printing, Marketing & Promotional Products with Powerful Execution.

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