Competitive Advantage and Call to Action Part I

Competitive Advantage
As defined by BusinessDictionary.com, competitive advantage is:
“Superiority gained by a firm when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities.”

This definition might sound a little academic, but competitive advantage is what sets you apart from your competition.

Your competitive advantage could be:
Price
Quality
Shipping and handling fees (or lack thereof)
Experience
Customer service
Credibility
Something unique to your industry.


It is important to understand that having a competitive advantage is not an event, but a process. In other words, making and keeping a competitive advantage is ongoing. It becomes a game of trying to stay one step ahead of your competition. You should never feel comfortable with the status quo, but continue to find ways to improve your advantage.

Determining Your Competitive Advantage
The first step to determining your competitive advantage is to know your competition. Take time to research the main players in your industry. A good way to learn about your competition is to do several product keyword searches on Google. Look at each website listed on the first page of the results, both the sponsored and natural listings, to review their products and services.

Now rate your competition based on the list of possible competitive advantages listed above. One of the best ways to do this is to organize a spreadsheet, listing the possible competitive advantages across the top of your page, and then list the companies down the left side of the page, with your company as the top listing. To make things simpler, you might just focus on one top-selling product per spreadsheet.

Compare price, quality, shipping options, and so on. You should start to see some areas where your product or company outshines you competitors, and some areas where you can make simple adjustments that would give you an advantage.


For example, many years ago, when Heritage Internet Technologies started out in the web design industry, this process was used to determine what we had that was unique and different. One glaring item stood out: pricing. No one in our industry could design a custom website for the price point we were offering. For HIT, price became a strong competitive advantage. It is still used today in all of our advertising.