How to Define Your Business’ Competitive Advantage

Small Business Advisory Perth | Darwin | Brisbane | Business Station
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How to Define Your Business’ Competitive Advantage

Whether you’re starting a business or already have one, defining your competitive advantage is essential for building your brand. It lets you stand out from the competition, build customer loyalty and increase brand awareness. This point of difference may take the form of a low price point, a unique product, the service or experience you deliver, or the convenience you offer. Once you know what it is, it can transform how you present your business to the world and communicate its benefits. Here are three essential steps to develop and maintain your business’ competitive advantage.

1. Know your target audience

The first step for finding your competitive advantage is understanding your target audience. Consider their age, how much they’re willing to spend and what they value. The competitive advantage you choose needs to capture their interest – for example would they prefer a lower price point or a more convenient service or product at a higher price? You can research this by sending out customer surveys (if you already have a business), analysing your competition and what makes them successful, and looking at trending products from either your own or your competitors’ business.

You should also consider why your target audience isn’t buying your product, and what you need to do in future to increase your success. This can identify aspects of your business that you need to change, such as developing a stronger social media presence to reach more potential customers.

2. Let people know

It’s essential to build your communication and marketing around emphasising your competitive advantage, including in the ‘about’ section on your social media profiles and website, social media content and email newsletters. What sets you apart from other brands should be loud and clear for existing and potential customers.

3. Be adaptable

Remember, your competitive advantage is adaptable! It can change to suit the benefits your customer needs, or as your competition evolves. Remember to keep researching your target audience – a strong competitive advantage should be informed and supported by what your customer wants.

Following these steps will help you to stand out from competitors, reach your target audience and build brand loyalty with existing customers. They’ll also help you identify ways to strengthen your business’ marketing and communication strategy.

If you found this useful and would be interested in ongoing guidance to identify and develop your business’ competitive advantage, you might like our Thrive program. Find out more about it here.

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