What is Competitive Advantage and Strategies in Marketing?

First, let's see What is Competitive Advantage in Marketing. 

Competitive advantage can simply describe as decisions most of the companies are taking to increase their sales of product and services with good quality, but cheaper price against their competitors in the market.

Factors of the competitive advantage are varying from product to product, country to country, market to market, and economy to economy. If a company could produce their product and services more effectively and efficiently than the rivals it will be direct to the higher profit margins. For example, a bike rider will buy engine oil from an oil mart, 2 or 3 dollars cheaper than other stations in his riding area. If it happens repeatedly even for the cheapest price, the oil mart getting more sales than its competitors.

Competitive advantage is always different from each sector and the decisions can be made and apply effectively and strategically. Some other examples can be list as below.

1. Using natural resources than competitors.

2. Hiring laborers with high skills for the market price or a bit lower range.

3. Geographically locating is also effective for the advantage of competitors.

4. Producing the same and unique product at a lower cost.

5. Increasing the Goodwill and Brand image recognition to a higher standard.

6. Using better technology solutions.

7. Invest in innovative products with higher utility.

8. Product and services must be user friendly.

9. Customization facility is also would be an advantage when it comes to competing with rivals.

10. Giving good support to the customers than the rivals.

A marketer should always identify the competitive advantage to build their customer audience to hold the customer strongly. If a company expecting the advantage, the way of delivering the benefits to the target market of products and services, are very effective. So it would be helpful to open more areas to increase the audience strongly.

 The sustainability of the competitive advantage for a company is highly important to sustain in the market. So, extremely recommend to making decisions and activating strategies should experiment very carefully. All the decisions and strategies should not be affecting badly to the recognition and trademark. Each and every segment is important. And in this century, focusing on advantages from competitors is a must strategy in every industry.

 Strategies in Competitive Advantage in Marketing

Basically, we can identify 3 strategies companies are focusing on. These are called generic strategies according to Porter.

01. Cost Leadership strategy

In this strategy, increasing profits by reducing the production cost at the same time and consistently maintain the average price of the product or service in the industry. In this strategy, the companies act as a low-cost producer. Reducing the cost of the product or service should not be affected by the final product. So the trust of the customer must be maintained and it will be effective for the higher profit. The company should have the ability to maintain the utilization of resources in the economy to sustain itself in the market.

02. Differentiation strategy

Differentiation will be affected to regain the goodwill and brand name of a company. This strategy is always innovating products or services and giving a greater experience to the customer. Marketers should make good research in the relevant industry and developing the product or service to be the good end result competitively, will be the attractive customers to the company successfully. The company should be able to deliver a high-quality product with good and different benefits offering than the competitor.

03. Focus strategy

The company should focus on a specified target market and produce different products at a low cost. This would be effective to build the target audience with a strong recognition of the brand and develop the product which can't even the competitors to reach. This type of product must have a specialty and uniqueness on the product.

Always the competitiveness of any industry is basically dependent on the ability to develop core competencies. Such as, specialized techniques, unique and highly trained skill, and developing knowledge-based products.  Utilizing these strategies accurately is important to get high long term profits for a company in any industry.