What is your competitive advantage?

A competitive advantage that is clear and easily understood by customers is essential for success.  There are four basic approaches to gaining a competitive advantage which can be applied to most types of innovations.  These are:

• Become the low cost supplier;
• Develop differentiated, innovative products and services;
• Target a niche: geography, industry, product/service; and
• Employ differentiated business methods and approaches.

To successfully differentiate your product, service or business model the differentiating factor must be:

• Important – deliver a valued benefit to a large proportion of buyers.
• Distinctive – the difference must be offered only by your business or must be very distinctive from other businesses.
• Superior – the offer must be better then any other technologies or processes which provide the same benefit.
• Communicable – customers must be able to see the benefit and communicate it to others easily.
• Protected – the difference must not be easily copied by competitors.
• Affordable – the customer must be able to afford the benefit.
• Profitable – the business must benefit from introducing the benefit.

Links to subsections of this topic

Twelve Tips for Market Research
What is your competitive advantage?
Knowledge and Technology to Help You Develop Your Idea
Programs and Services