Introduction
In many areas of manufacturing and services, there is intense competition for customers and resources, and some businesses look much more confident than others. A competitive advantage for an enterprise arises when it manages to simultaneously reduce the cost of producing a product or service and increase the product’s attractiveness to potential buyers. The unique activity of the company and the skillful use of its features and strengths are good ways to increase its competitive advantage in the market.
Discussion
The final profit from the production or provision of services depends on the added value that the company can provide for itself. The added value directly depends on the value of the enterprise and its products in the eyes of the end customer and the supply chain. If a company can offer something unique and valuable, more advantageous than its competitors, it will set it apart from the rest and attract attention. The biggest winners are businesses that can increase customer buying desire without increasing production costs. This is called dual competitive advantage, which distinguishes single companies in their field and makes them the most prominent players in the market. It is only possible to succeed by uniquely positioning yourself as a company and your product or service. Developing the concept of its uniqueness is a complex process that requires a thoughtful analysis of the current supplier-production-buyers chain. Customers are willing to pay extra for outstanding performance if there is convincing evidence of the benefits they will receive if they invest in purchasing a product. At the same time, work on reducing the cost of production is necessary to increase the broader wedge between supplier opportunity cost and the willingness of buyers to pay for the final product. Thus, the added value and profit of the enterprise will increase.
Conclusion
Highlighting your enterprise’s uniqueness and increasing your competitive advantage is a labor-intensive process. The more unique and attractive a product or service a seller offers, the greater becomes the demand for it. It requires a comprehensive analysis and works on improving many internal processes. However, in the end, it is an effective way to differentiate yourself from the rest and increase revenue through unique positioning and attracting more attention from buyers.
Reference
Ghemawat, P., & Rivkin, J. W. (2014). Competitive Advantage: Reading+Interactive Illustrations. Harvard Business Publishing.