Of its main advantages. Advantages in the banking market

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In this article, you will learn:

• What are the competitive advantages of the company
• What are the types and sources of the company's competitive advantages
• What are the natural and artificial competitive advantages of the company
• How to correctly describe the competitive advantages of a company
• How to assess the competitive advantages of a company
• How to avoid mistakes in the formation of the company's competitive advantages

The system for managing the company's capabilities in the market “produces” such a “product” as competitive advantages. No enterprise can exist if there is no demand for its products (services), just as in the absence of competitive advantages, there can be no talk of market opportunities. The merit of the company's competitive advantages is its recognition in the market and protection from the effects of competitive forces. If there are no competitive advantages, then the company simply cannot be competitive.

What can be the competitive advantages of the company

The competitive advantages of a company are understood as such characteristics and qualities of a brand or product, thanks to which the organization objectively surpasses its competitors. The economic sphere does not develop in the absence of competitive advantages. They are an integral part of the corporate style of the company. In addition, they protect it from competitors' attacks.

The sustainable competitive advantage of the company is the preparation of a development plan for the enterprise, which will ensure the receipt of profit and the realization of the most promising opportunities. Mandatory requirement to this plan - neither real nor prospective competitors should use it. Also, they should not be allowed to adopt the results of its implementation.

The development of the company's competitive advantages is based on its goals and objectives, the achievement of which depends on the position of the organization in the market for goods and services, as well as on how successful their implementation is. To create a basis for effectively developing the factors of the company's competitive advantages, as well as the formation of a strong relationship of this process with the conditions existing in the market, it is necessary to restructure the functioning system.

What are the types of competitive advantages of a company? There are two of them:

What are the main sources of a company's competitive advantage

The company's competitive advantages have a fairly well-established structure. Michael Porter identified 3 main sources for developing a company's competitive advantage: differentiation, cost, and focus. Let's tell you more about them:

• Differentiation

When starting to implement this strategy of the company's competitive advantages, one should remember that it is based on efficient provision of services to consumers, as well as presenting the company's goods / services in the best possible light.

• Costs

The implementation of this strategy is based on the following competitive advantages of the company: minimal personnel costs and scale, automation of all processes, the ability to use limited resources, work on technologies aimed at reducing production costs and having a patent.

• Focus

This strategy is based on the same sources as described above, however the target audience, covered by the accepted competitive advantage, is rather small in number. Non-consumers may be dissatisfied with such a competitive advantage of the firm, or it has no effect on them.

All companies have competitive advantages related to the natural (basic) group. However, not all of them cover them. This is not done by organizations that believe that their competitive advantages are obvious or are disguised as generally accepted clichés.

The main competitive advantages of the company include the following:

Competitive advantages of the company on the example of various business areas

What competitive advantages can construction organizations have:

• Having our own design department.
• A staff staffed only by highly qualified specialists.
• The presence of objects that have already been commissioned.
• A paragraph with a detailed calculation proving more low level prices from the company N.
• The presence of a fleet of our own construction and auxiliary equipment.
• All types of insurance issued for each worker, provision of a full social package to all personnel, availability of special permits.
• Seasonal discounts provided by the company (prices are lower in winter).
• Engineering control of each object.
• Fixed cost of construction, negotiated before the start of work. Guarantees of its preservation even in the event of a weakening of the ruble exchange rate.
• The guarantee for the objects handed over. Not blindly following fashion trends and using very expensive materials, but a conscious choice of the best and most affordable ones that have already proven themselves.
• High speed of calculating the cost of work (for example, half an hour). Possibly the presence of an online calculator on the website.
• Full cycle of work. When the work is carried out by one company, customers are less worried about the process.

Transport companies can have the following competitive advantages:

• Refund of N% of the order value in case of delay by N minutes / hours.
• Free forwarding when ordering from….
• Lack of intermediaries: you entrusted us with the cargo, we will deliver it ourselves.
• Equipping vehicles with navigators and satellite radios, which makes it possible to track the location of the cargo at any time of the day.
• Guaranteed cleanliness of cars, absence of unpleasant odors that can be absorbed by the cargo.
• Free packing of goods.
• A good fleet of foreign-made equipment, a small percentage (0.004) of breakdowns from the number of all trips.
• More low price per kilometer than that of competitors, possible thanks to wholesale purchases of fuel.
• An impressive amount of cargo transported during the company's existence (“Drivers transported N cargo in N years”, or “Traveled N million (thousand) kilometers”).
• Even if you do not have any idea about the organization of cargo transportation, we will not profit from you. Our conditions are favorable and the same for everyone.

Competitive advantages of organizations operating in the field of trade:

We carefully control the quality of purchased goods, refusing to purchase second-rate products.

• We provide a guarantee for the product, we service it after the sale.
• Products are purchased in bulk, so we can sell them at low prices.
• We constantly analyze the market to identify the best products.
• We listen to our clients, try to understand them and satisfy their needs.
• Our marketing activities are not aggressive: we do not impose our products.
• Our a store conveniently located, it is not difficult to drive up to it, we have equipped ramps, etc.
• Promotions are held regularly, within which goods can be purchased much cheaper.
• We advise the best, and do not impose the overwhelming and expensive.
• It is normal for a product to not work for you. In such cases, we guarantee a full refund of the goods without long proceedings.

Submit your application

Manufacturing enterprises have their own competitive advantages. Let's list them:

• The technologies used are constantly being improved, the manufactured goods are of high quality.
• Work on a preferential taxation system (low electricity tariffs, cheap raw materials), which allows setting low prices for products.
• A team of highly qualified engineering professionals.
• The ability to increase production volumes without compromising the quality of goods.
• No extra charges by region.
• Higher quality products compared to last year.
• Serious clients (list).
• Absence of non-target costs, restructuring of production, due to which it is possible to reduce prices for products for end consumers.
• Direct sales (no intermediaries).
• Availability of employees of the old school who can pass on their rich experience to young professionals.

Competitive advantages of international companies on the example of Toyota

1. High product quality... The main competitive advantage of the company is a top-level car. In 2015, about 120,000 Toyota cars were purchased in Russia. The decisive role of this competitive advantage of the company was voiced by its ex-president Fujio Cho. By purchasing a car from this company, a person can be sure that it was produced using a whole range of modern technological developments.
2. Wide range of products. In Toyota showrooms, you can buy any model of a car of this brand: Toyota Corolla (the main advantage is compactness), Toyota Avensis (appreciated for its versatility and comfort), Toyota Prius (new model), Toyota Camry (a whole series of cars is presented), Toyota Verso (family format), Toyota RAV4 (small SUVs), Toyota Land Cruiser 200 and Land Cruiser Prado (popular modern SUVs), Toyota Highlander (all-wheel drive crossovers), Toyota Hiace (are convenient and compact). This is also an important competitive advantage: from the presented models, you can choose a car for people with different preferences and financial capabilities.
3. Effective marketing. An excellent competitive advantage of the company is the vehicle certification with Toyota Tested checks. Those who have purchased a car of this brand in Russia are provided with assistance around the clock, that is, technical support services are constantly working. There is a Trade-In car purchase program, which allows you to simplify the process of purchasing a car due to lucrative offers from the company.
4. The customer comes first. This competitive advantage is also very significant. The company secured it by developing the Personal & Premium program in 2010. She was presented at the international car show in Moscow. The program includes lucrative offers for buying a car on credit. Employees of the New Car Buy Survey found that the loyalty of our compatriots is highest to Toyota.
5. Effective company management... What is this firm's competitive advantage? She has developed an ERP program that allows you to efficiently monitor all sales of Toyota cars in Russia online. The year of development of this program is 2003. This is a unique competitive advantage of the company, since this program is combined with the market situation, with various features of doing business in Russia, with its current legislation. Toyota has another competitive advantage - the presence of a holistic corporate structure created to help the company and its partners to quickly operate with information about the availability of certain car models in showrooms, warehouses, etc. In addition, all documents are stored in Microsoft Dynamics AX. carried out with auto operations.

What are the company's competitive advantages called "artificial"

Artificial competitive advantages can be used by a company in the absence of special offers in order to tell about itself.

When is it needed:

• The restructuring of companies competing with the firm is similar (that is, they have the same competitive advantages).
• The company cannot be classified as a small or big business(that is, its assortment portfolio is not very large, there is no narrow focus, and the cost of goods is standard).
• The company is just beginning to develop, has not yet developed a customer base, is not very popular among consumers and does not have any particular competitive advantages. Basically, this happens when people do not want to work for someone else, quit and open their own business.

In this case, the development of artificial competitive advantages of the company is required, such as:

Added value. For example, an organization sells computers, while it cannot compete in pricing policy... Then there is the possibility of using such a competitive advantage of the company: installation on computers operating system and standard software will allow the equipment to be sold at a slightly higher price. This is the added value, which also includes various promotions and bonus programs.

Personal adjustment. It makes sense for a company to have such a competitive advantage if competitors hide behind standard clichés. Personal adjustment is about showing the face of the organization and applying the WHY formula. This competitive advantage works effectively in any field of activity.

A responsibility... Differs in effectiveness. The combination of responsibility with personality adjustment is excellent. Consumers will be more willing to purchase goods / services, knowing that the manufacturer vouches for their quality and safety.

Guarantees... There are two types of guarantees: for circumstances (for example, a liability guarantee - the provision of goods for free if the cashier does not issue a check) and for a product / service (for example, the possibility of returning or exchanging goods within a certain time after purchase).

Reviews... If they are from real customers. Potential consumers are interested in the status of people leaving reviews about your company. The advantage works great if the responses are submitted on a special form that has the person's certified signature.

Demonstration... One of the main competitive advantages of the company. If she does not have any, or they are not obvious, then you can create a presentation of your product with illustrations. Service providers are encouraged to make presentations in video format. The main thing is to correctly focus on the properties of the product.

Case... The lack of cases is not excluded, especially for new companies. In this case, the development of artificial cases is possible. Their essence is to provide services to themselves, potential customers or existing ones on a netting basis. This will give you a case that demonstrates the level of professionalism of your company.

Unique selling proposition. We have already talked about it above. The meaning of this competitive advantage is that the company operates with any detail or provides information that sets it apart from competitors. Practicum Group, which conducts various trainings, has unique selling propositions. This competitive advantage is efficient.

How to find and correctly describe the main competitive advantages of a company

All businesses have their own advantages. Even if they do not stand out in any way - neither in assortment, nor in prices. Even if you think your company is completely mediocre, you need to be sure to understand its benefits. The easiest way to do this is by interviewing your customers. Moreover, their answers may be unexpected and surprising for you.

Someone will explain the cooperation with you by the proximity of the location (in geographic terms). Someone trusts you, someone just likes your company. Collection and detailed analysis this information will help you increase your income.

But the search for your benefits does not end there. Write down on a piece of paper what your firm's strengths and weaknesses are. In doing so, try to be objective. That is, designate what you have and what you do not have yet. Do not write abstractly, but concretize your thoughts.

Here are some examples:

Abstraction	Specifics
You can count on us	We guarantee reliability and safety: the amount of cargo insurance is 10 million rubles.
We have a high level of professionalism	For 10 years of work, we have implemented 300 projects and gained experience, so we are able to solve problems that others do not undertake.
The quality of goods is high	The technical parameters of our products are 2 times higher than those established by regulatory documents.
Individual approach	We guarantee no brief. We communicate live, studying in detail the nuances of business.
Service at altitude	Our support works daily, 24 hours a day. It takes no more than 15 minutes to resolve any issue.
Low prices	Products are 10% cheaper than competitors, since we ourselves produce raw materials for them.

It is not necessary to mention, for example, on the website about all of your competitive advantages. The task of this stage is to find the largest number of strong and weaknesses enterprises. This is an important starting point.

Then analyze your weak spots and figure out how you can beat them so that they become your advantages. The formula for this is simple:

Yes, we have "flaw" but it is "advantage".

Here are some examples:

Flaw	Turning into an advantage
Office far from the center	This is true, but the warehouse is located here. And there is an opportunity to see the products right away. Even a truck can easily park with us.
Higher cost of goods than competitors	It is due to the rich bundle. When you buy a PC, our specialists will install an operating system and basic software for you. In addition, you will receive a gift.
Long delivery times	Yes, but we supply not only typical parts, but also rare ones, according to individual orders.
The company is new to the market, it has little experience	Yes, but we are mobile, work efficiently, and show flexibility. We have no bureaucratic delays (reveal these nuances in detail).
Poor assortment	This is true, but we specialize in the brand. And therefore we know him deeply. Accordingly, our consultations are more useful and of better quality.

The idea is clear. So you can get competitive advantages of several types at once:

• Natural(the actual data you hold that sets you apart from the competition).
• Artificial(amplifiers that also set you apart from competitors - guarantees, individual approach, etc.).
• "Shifters" are your weaknesses turned into advantages. This is in addition to the first two points.

Now you need to line up the identified competitive advantages of the company in such an order that at the bottom of the list are the least significant ones for consumers, and then edit the list. It should be distinguished by brevity, accessibility and comprehensibility.

Analysis of the company's competitive advantages and their assessment

Approximately 90% of businessmen do not conduct an analysis of their competitors, and on its basis it is possible to develop a company's competitive advantages. There is only an exchange of new technologies, that is, enterprises borrow ideas from competitors. It doesn't matter who it was innovative idea, others will use it anyway.

Thus, the following clichés came to light:

• Highly qualified specialist.
• Personal approach.
• Highest quality.
• Competitive cost.
• First class service.

There are others, and any of them actually cannot be called a competitive advantage of the company, since no organization will say that it produces low-quality goods, and its staff is staffed with inexperienced specialists.

However, there is another way of looking at this. If enterprises have few competitive advantages, then it will be easier for newcomers to develop and attract potential customers. At the same time, the audience gets a wider choice.

Therefore, to provide consumers with favorable terms of purchase and positive emotions from it, you need a competent study of competitive advantages in the company's strategy. First of all, the client should not be satisfied with the product, but with the company.

How successful the company's competitive advantages are can be understood by fully assessing the pros and cons of the company's position in the competitive struggle and comparing the assessment results with competitors' data. For the analysis, you can use the method of indicative assessment of KFU.

If you are smart about developing an action plan, then you can turn the weaknesses of competitors into your competitive advantage.

What should be analyzed:

1. Is the company stable in protecting its position when the market situation changes in the sphere of its branches of activity, in conditions of fierce competition, in the presence of strong competitive advantages from other firms?
2. Does the firm have an effective competitive advantage? Or are they not enough? Or not at all?
3. Is it possible to achieve success in the competition if you follow the existing action plan (what is the company's position in the competitive system)?
4. How stable is the company at the moment?

You can analyze the activities of competitors using the method of weighted or unweighted estimates. In the first case, you need to multiply the company's estimates for a specific indicator competitive opportunities(from 1 to 10) by their weight. In the second case, it is assumed that all efficiency factors are of the same importance. Realization of the competitive advantages of an enterprise is most effective if it has the highest marks.

The task of specialists at the last stage is to identify strategic mistakes that negatively affect the formation of the company's competitive advantages. For the program to be effective, you need to describe in it ways to resolve any difficult situation.

That is, at this stage it is necessary to create a single list of problems that need to be urgently solved in order to form the company's competitive advantages and its strategy. This list is developed on the basis of the results of the assessment of the organization's activities, the market situation and the position of competitors.

To identify existing problems, you need to answer the following questions:

In what situations will the current program not protect the company from problems - both internal and external?

What level of protection against actions currently taken by competitors does the adopted strategy provide?

Is there support for the current competitive advantage program, and is it compatible with it?

How can you lose the competitive advantage of the company?

Any competitive advantage has a limited resource, therefore, the company's position in the market depends on how many competitive advantages it has, how significant they are (available to competitors) and how long the life cycle of the competitive advantage is. The more advantages that are unique and difficult to reproduce, as well as the longer their life cycle, the greater the strength of the company's strategic positions.

Factors external environment can change, which affects the competitive advantages of the company and can lead to their decrease or even disappearance.

Reasons for the loss of competitive advantage:

• Deterioration of factorial conditions (increase in costs, decrease in the level of education and qualifications of personnel, etc.).
• Decrease in investment attractiveness and innovative potential (it is inevitable if you postpone organizational changes, fearing a decrease in income and not wanting to invest in the future).
• Decreased ability to adapt (bureaucratization, work on obsolete equipment, too long development of new products).
• Weakening of the competitive struggle (due to the strengthening of the positions of monopolists, the introduction by the state of high duties on imported products).
• The low level of income of the majority of the population, as a result of which the requirements of people for the quality and range of goods are reduced.

If you correctly use the company's trademark (brand), then you can increase profits and sales, expand the range, inform consumers about the exclusive characteristics of products, stay in this field of activity, introduce effective methods development. Therefore, the brand is the company's competitive advantage.

If the leader does not realize this, then he will not be able to bring his company to the top. But a brand is a very expensive competitive advantage. To implement it, you need to have special management skills and experience working with the brand, to know how to position the company.

The brand is developed in several stages:

Stage 1. Goal setting:

• the goals and objectives of the company are formulated (this stage is passed during the formation of all competitive advantages);
• it is established how significant the trademark is within the company;
• the position of the brand is established (parameters, longevity, competitive advantages of the company);
• measurable brand criteria (KPI) are defined.

Stage 2. Development planning:

• available resources are assessed (a single stage for the process of forming any competitive advantage);
• customers and performers are approved;
• the terms of development are determined;
• additional goals or obstacles are identified.

Stage 3. Assessment of the current situation brand(for existing brands):

• how popular it is with consumers;
• whether potential buyers know about it;
• whether potential customers are attracted to the brand;
• what is the level of brand loyalty.

Stage 4. Assessment of the market situation:

• competitors are assessed (the first stage in the formation of any competitive advantage of the company);
• potential customers are assessed (based on a study of their preferences and needs);
• the sales market (supply, demand, development) is estimated.

Stage 5. Formulation of the essence of the trademark:

• the purpose, position and benefits of the brand for potential customers are determined;
• the exclusivity of the brand is revealed (competitive advantages, value, features);
• brand attributes are being developed (components, appearance, main idea).

Stage 6. Planning brand management:

• marketing elements are developed, the brand management process is explained (recorded in the brand book);
• responsible for brand promotion are appointed.

Stage 7. Introduction and increasing the popularity of the brand (this stage determines whether the competitive advantages of the company will be successful in terms of promoting the brand):

• a media plan is drawn up;
• advertising materials are produced and distributed;
• multifunctional loyalty programs are being developed.

Stage 8. Analysis of the effectiveness of the brand and the work done:

• the quantitative parameters of the brand (KPI) established at the first stage are assessed;
• real results are compared with planned ones;
• the strategy is being adjusted.

6 common mistakes when shaping the competitive advantage of companies

1. Lack of specificity.

The use of marketing clichés and hackneyed phrases, adherence to generally accepted rules, the lack of specific focus on certain products.

Do not use such worn-out wording:

- "Our content is unique."

- "We are the best."

- "We have the highest quality of goods."

- "Only we have a huge selection of goods."

Offering SUCH competitive advantages to your audience means showing disrespect to them. Do not expect your competitors to present their advantages in a different way, call their product common, recognize the average level of quality, and claim that the product range is not large enough.

2. Anonymity.

An anonymous statement implies the impossibility of identifying its author and understanding on what grounds it was made. For example: "We sell the best quality goods in the city." Whose statement is this and where is its evidence?

3. The lack of evidence.

Remember that your unfoundedness and lack of specific facts are the reason for buyers not to trust you. In this case, the loss of a customer can be avoided only if he is loyal to the product, brand, manufacturer, store, etc.

4. Impossibility of verification.

That is, the assertions of the consultant / sales manager cannot be verified at the moment, or they cannot be verified in principle. For example: "Our company is the only one ...".

5. Lack of comparison.

Use as evidence of specific facts, values ​​of indicators, but without comparison. And advantage is something better than anything else. For example: "The raw materials for our products are environmentally friendly materials."

6. Addresslessness.

Any competitive advantage has both pros and cons. It depends on which side it is viewed from. It will not be effective if it is not clearly defined for whom it is intended. For example: “Our speakers have a stylish design. We recommend paying attention to them. This series is more sophisticated than the analogous to it, produced by the firm X ". Although the product is compared with other analogs, there is no targeting.

The world does not stand still, information is constantly being updated, and market participants are in search of marketing ideas, ways of doing business, new views on their product. Any business is tested for strength by competitors, therefore, when developing a development strategy, it is reasonable to take into account their influence, market share, position and behavior.

What is Competitive Advantage

Competitive advantage is a certain superiority of a company or product over other market participants, which is used to strengthen its position when reaching the planned profit level. Competitive advantage is achieved by providing the client with more services, better quality products, relatively cheap goods and other qualities.

A competitive advantage for a business is provided by:

- prospects for long-term growth;

- stability of work;

- getting a higher rate of return from the sale of goods;

- creating barriers for new players when entering the market.

Note that competitive advantages can always be found for any type of business. To do this, you should conduct a competent analysis of your product and the product of a competitor.

What types of competitive advantages are there

What allows you to create a competitive advantage for your business? There are 2 options for this. First of all, the product itself can provide a competitive advantage. One of the types of competitive advantages is the price of the goods. Buyers often prefer to buy a product only because of its cheapness relative to other offers with similar properties. Due to the low cost, the product can be purchased even if it does not represent any particular consumer value for buyers.

The second competitive advantage is differentiation. For example, when a product has distinctive features that make the product more attractive to the consumer. In particular, differentiation can be achieved through characteristics other than consumer properties... For example, at the expense of the brand.

If a company creates a competitive advantage for its product, it can exclusively highlight its market position. This is achieved thanks to the monopolization of a part of the market. True, this situation is contrary to market relations, since the buyer is deprived of the opportunity to choose. However, in practice, many companies not only provide themselves with such a competitive advantage of the product, but also retain it for a long time.

4 criteria for assessing competitive advantages

Utility. The proposed competitive advantage should be beneficial to the company's operations and should also increase profitability and strategy development.

Uniqueness. Competitive advantage should differentiate the product from competitors, not duplicate them.

Security. It is important to legally protect your competitive advantage, to make it as difficult as possible to copy it.

Value for the target audience of the business.

Competitive advantage strategies

1. Leadership in costs. Thanks to this strategy, the company earns incomes above the industry average due to the low cost of its production, despite high competition. When a company receives a higher rate of return, it can reinvest these funds to support the product, inform about it, or outperform competitors at the expense of lower prices. Low costs provide protection from competitors because income is maintained in an environment that is not available to other market participants. Where can you use a cost leadership strategy? This strategy is applied with economies of scale or with the prospect of achieving lower costs in the long term. This strategy is chosen by companies that cannot compete in the industry at the product level and work with a differentiation approach to provide distinctive characteristics for the product. This strategy will be effective when there is a high proportion of consumers who are price sensitive.

• Competitive information: 3 rules for collecting and using it

This strategy often requires product unification and simplification to facilitate production processes and increase production volumes. It may also require a high initial investment in equipment and technology to reduce costs. Careful monitoring is required for this strategy to be effective. labor processes, product design and development, with a clear organizational structure.

Cost leadership can be achieved through certain opportunities:

- limited access of the enterprise to obtaining cheap resources;

- the company has the opportunity to reduce production costs due to the accumulated experience;

- the management of the company's production facilities is based on a principle that contributes to economies of scale;

- the company provides for scrupulous management of the level of its reserves;

- strict control of overhead and production costs, abandoning small operations;

- availability of technology for the cheapest production in the industry;

- standardized production of the company;

2 steps to building a competitive advantage

Alexander Maryenko, project manager of the group of companies "A Dan Dzo", Moscow

There are no clear instructions for building a competitive advantage, taking into account the individuality of each market. However, in such a situation, you can be guided by a certain logical algorithm:

Determine the target audience who will buy your product or influence this decision.

Determine the real need of such people associated with your services or products that are not yet satisfied by suppliers.

2. Differentiation. When working with this strategy, the company provides unique properties for its products that are important for the target audience. Consequently, they allow you to set a higher value on the product compared to competitors.

A product leadership strategy requires:

- the product must have unique properties;

- the ability to create a reputation for high quality product;

- high qualification of employees;

- the ability to protect a competitive advantage.

The advantage lies in the ability to sell the product at higher prices than the industry average, avoiding direct competition. Thanks to this strategy, it is possible to achieve better brand loyalty and loyalty, under the conditions of competent assortment construction, and the presence of competitive advantages.

Risks or Disadvantages of Using a Differentiated Marketing Strategy:

- a significant difference in prices is possible, due to which even the unique qualities of the product will not attract a sufficient number of buyers;

- the product may lose its uniqueness when copying the advantages with cheaper products.

This strategy is used for saturated markets by companies ready for high investment in promotion. There is no need to talk about low cost - it will be higher than the market average. However, this is offset by the ability to sell the product at higher prices.

3. Niche Leadership or Focus. The strategy assumes protection from large competitors and substitute goods. In this case, it is possible to achieve a high rate of return due to more efficient satisfaction of the needs of a narrow audience of consumers. This strategy can be built on competitive advantages of any type - on the breadth of the offered assortment or on the lower price of the product.

In this case, the company is limited in market share, but it does not need significant investments to develop the product, which is a chance for the survival of small enterprises.

Risks and Disadvantages of Using a Focusing Strategy:

- there is a high probability of large differences in the prices of goods in comparison with the leading brands of the market, which can scare off its target audience;

- the attention of large market participants switches to the niche segments in which the company operates;

- the serious danger of narrowing the gap between the needs of the industry and the niche market.

Where to Use a Niche Leadership Strategy? This strategy is recommended for small companies; it is most effective when the market is saturated, there are strong players, when the cost is high, or when costs are not competitive in comparison with the market leaders.

Three stages of a service strategy

Stage I. Innovation. When one of the market participants introduces new things in customer service. Company in this period stands out given the presence of a new competitive advantage.

Stage II. Addictive. The proposed service is becoming familiar to consumers, and an analogue is gradually being introduced in the activities of competitors.

Stage III. Requirement. For consumers, this offer becomes an integral element of a service or product, becoming a standard.

How to check the level of service in your company

• Conducting informal surveys. The CEO and other executives need to understand what consumers think about the service they offer.
• Conducting formal interviews (focus groups). Will rationally involve both consumers and representatives of all departments of his company for these events.
• Hire third-party consultants to survey company employees. Freelance consultants increase the value of responses (with more candid responses).

How to improve the service

Tatiana Grigorenko, Managing Partner, 4B Solutions, Moscow

Let's consider general tips for improving the service in the work of companies.

1. Surprise, affect emotions. Typically, visitors to the office are offered tea bags or instant coffee. We decided to pleasantly surprise our customers - the visitor is offered a choice of 6 types of professionally prepared coffee, 6 excellent varieties of tea with branded chocolate for dessert.

2. Break the rules. On the modern market it is ineffective to be like everyone else, you need to be better than others.

3. Listen to your customers. Need to ask customers what they will be interested in?

How to create a competitive advantage

When developing a competitive advantage, there are nine criteria for a successful option to consider:

1) Uniqueness.

2) Long term. Competitive advantage should be of interest for at least three years.

3) Uniqueness.

4) Plausibility.

5) Attractiveness.

6) Have ReasonstoBelieve. Specific reasons that will lead buyers to believe.

7) To be better. Buyers should understand why this product is better than others.

8) Have the opposite. There must be a complete opposite in the market. Otherwise, it will not be a competitive advantage.

9) Brevity. Must fit into a 30 second sentence.

Step # 1. Making a list of all the benefits

Product benefits are sought as follows:

- we ask buyers what competitive advantages they hope to get at the expense of your product;

- make a detailed list of all the properties that the product has, based on the characteristics from the "marketing mix" model:

1) Product

What can be said about the product:

- functionality;

- brand symbols: logo, name, corporate identity;

- appearance: packaging, design;

- the required quality of the product: from the position of the target market;

- service and support;

- assortment, variability.

2) Price

What can be said about the price:

- price strategy for entering the market;

- retail price: the selling price of a product must be correlated with the desired retail price only if the company does not become the last link in the overall distribution chain.

- pricing for different channels sales; supposed different prices, depending on a specific link in the supply chain, a specific supplier;

- package pricing: with the simultaneous sale of several products of the company at special prices;

- policy regarding the conduct of promotional events;

- availability of seasonal promotions or discounts;

- the possibility of price discrimination.

3) Place of sale

It is necessary to have a product on the market in the right place so that the buyer can see and purchase it at a suitable time for himself.

What can be said about the sale meta:

- sales markets, or where the sale of goods is planned;

- distribution channels for the sale of goods;

- type and conditions of distribution;

- conditions and rules for displaying goods;

- issues of logistics and inventory management.

4) Promotion

Promotion in this case involves all marketing communications to attract the attention of the target audience to the product, with the formation of knowledge about the product and key properties, the formation of the need to purchase goods and repeat purchases.

What can be said about promotion:

- promotion strategy: pull or push. With the Push strategy, it is assumed to push the product along the trade chain by stimulating intermediaries and sales personnel. Pull - "pulling" products through the distribution chain by stimulating consumers, the final demand for their goods;

- target values ​​of knowledge, brand loyalty and consumption among their target audience;

- the required marketing budget, SOV in the segment;

- the geography of your communication;

- communication channels for contact with consumers;

- participation in specialized shows and events;

- media strategy of your brand;

- PR strategy;

- promotions for the coming year, events aimed at stimulating sales.

5) People

- employees who represent your product and company;

- sales personnel in contact with target consumers of the product;

- consumers who are "opinion leaders" in their category;

- manufacturers, on whom the quality and price of the goods may depend;

- Preferred consumer groups also belong to this group, including VIP clients and loyal customers who generate sales for the company.

What can be said about working with people:

- programs for the formation of motivation, with the development of relevant competencies and skills among employees;

- methods of working with people on which the opinion of the consumer audience depends;

- education and loyalty programs for your sales staff;

- methods for collecting feedback.

6) Process

This refers to the service market and the B2B market. The "process" implies the interaction between the company and the consumers. It is this interaction that forms the basis of buying in the market with the formation of consumer loyalty.

• Unique selling proposition: examples, development tips

You can talk about programs to improve the process of providing services to your target customers. The goal is to provide the most comfortable conditions for buyers when purchasing and using the proposed service.

7) Physical environment

This also applies to the service market and B2B. This term describes what surrounds the buyer at the time of purchasing a service.

Step # 2: Rank All Benefits

A three-point scale for the importance of characteristics is best suited for evaluating a list:

1 point - the benefit of this characteristic for target consumers is of no value;

2 points - the benefit is not primary, which stimulates the purchase of goods in the first place;

3 points - the received benefit is one of the most significant properties of the offered service.

Step # 3. Compare the list of benefits with competitors

The resulting list of characteristics should be compared with your competitors on two principles: whether the competitor has a given property, whether the competitor's condition is better or yours.

Step # 4. Look for an absolute competitive edge

Among the sources of absolute competitive advantages, it should be noted:

- the product is unique in one or several properties;

- uicality in the combination of properties;

- special components of the product composition, a unique combination of ingredients;

- certain actions are performed better, more efficiently and quickly;

- features of appearance, shape, packaging, method of sales or delivery;

- creation and implementation of innovations;

- unique technologies, methods for creating a product, patents;

- Calification of personnel and the uniqueness of their human capital;

- the ability to ensure the minimum cost in your industry, while assuming a higher profit;

- special conditions of sales, after-sales services for consumers;

- availability of access to limited raw materials and resources.

Step # 5. Look for “false” competitive advantages

First-mover. Be the first to announce the properties of competitors' products, before they have not yet informed their target audience about them;

Performance indicator. Creation of your own performance indicator;

Curiosity and interest. You can stand out thanks to a factor that is not considered decisive when buying, but will attract the attention of the target audience.

Step 6. Make a development and control plan

After identifying a competitive advantage, you need to form two further plans for marketing actions - a plan to develop your competitive advantage for the next few years and a plan to maintain the relevance of the presented advantage.

How to analyze your current competitive advantage

Stage 1. List the parameters for the assessment

Create a list of the key competitive advantages of your product and competitors.

For assessment, a three-point scale is best suited, according to which:

1 point = the parameter in the competitive advantages of the product is not fully reflected;

2 points = the parameter in the competitive advantage is not fully reflected;

3 points = the parameter is fully reflected.

Stage 3. Make a development plan

Form your action plan to improve the company's competitive advantage. Improvements should be planned for items in the assessment that receive less than three points.

How to develop competitive advantage

Competitive behavior in the market can be of three types:

Creative. Implementation of measures to create new components of market relations to gain a competitive advantage in the market;

Adaptive. Taking into account innovative changes in production, outstripping competitors in terms of production modernization;

Providing-guaranteeing. The basis is the desire to maintain and stabilize the obtained competitive advantages and market positions in the long term due to the addition of the assortment, improvement of quality, additional services to consumers.

The duration of the retention of competitive advantages depends on:

A source of competitive advantage. Can be a high and low order competitive advantage. The advantage of low order is represented by the possibility of using cheap raw materials, work force, components, materials, fuel and energy resources. At the same time, competitors can easily achieve low-order advantages by copying, searching for their sources of these advantages. The advantage in the form of cheap labor can lead to negative consequences for the enterprise. With low salaries for repairmen and drivers, competitors can lure them out. The advantages of a high order are the excellent reputation of the company, specially trained personnel, production and technical base.

The number of clear sources of competitive advantage in the enterprise. A larger number of competitive advantages for an enterprise will seriously complicate the tasks of its competing pursuers;

Continuous modernization of production.

How to survive the crisis and maintain a competitive edge

Alexander Idrisov, Managing Partner, StrategyPartners, Moscow

1. Always keep your finger on the pulse of events. Someone from the staff should be engaged in the collection and analysis of information about the state and trends of the market, how these trends can affect the business, taking into account the study of consumer preferences, demand dynamics, data on investors and competitors.

2. Develop the most pessimistic forecast for your company.

3. Focus on paying customers.

4. Focus on a narrow range of tasks. You need to take a close look at your company's business model. This does not mean that you need to abolish all areas of your activities. But it is worth focusing on a narrow range of tasks, abandoning non-core tasks or areas that can be outsourced.

• Reframing, or How to Deal with Customer Objections

5. Consider teaming up with competitors. Many companies are now ready for alliances with competitors on mutually beneficial terms.

6. Maintain relationships with potential investors. A particularly important condition during a crisis is that you must not lose ties with investors; it is better to activate them whenever possible.

Information about the author and company

Alexander Maryenko, project manager of the group of companies "A Dan Dzo", Moscow. Graduated from the Finance Faculty of Nizhny Novgorod state university... Participated in projects (more than 10, of which six - as a manager) aimed at increasing the profitability of companies' business and solving their systemic problems.

John Shoal, President, ServiceQualityInstitute, Minneapolis (Minnesota, USA). It is considered the pioneer of the service strategy. At the age of 25, he founded a firm specializing in service culture training for companies. Author of five bestsellers on the topic of the service, translated into 11 languages ​​and sold in more than 40 countries.

ServiceQualityInstitute Company formed by John Schole in 1972. Specializes in the development and implementation of service strategies in companies. More than 2 million people have been trained by ServiceQuality Institute specialists. The main office is located in Minneapolis, branches - all over the world (in 47 countries), their share is 70% of the total number of representative offices of the company. ServiceQualityInstitute and John Shoul are represented in Russia by ServiceFirst.

Tatiana Grigorenko, Managing Partner, 4B Solutions, Moscow.

4B Solutions Company founded in 2004. Provides outsourcing and consulting services. Areas of specialization - improvement of customer service systems, crisis management, professional legal and accounting business support. The staff of the company is over 20 people. Among the clients are the Business Aviation Association, the Triol corporation, the Rafamet machine-tool plant (Poland), the ANCS Group, IFR Monitoring, MediaArtsGroup, the Gaastra boutique chain.

Alexander Idrisov, Managing Partner, StrategyPartners, Moscow.

StrategyPartners. Field of activity: strategic consulting. Organization form: LLC. Location: Moscow. Number of staff: about 100 people. Major clients (completed projects): Atlant-M, Atlant Telecom, Vostok, GAZ, MTS, Press House, Razgulyay, Rosenergoatom, Russian Machines, Talosto, "Tractor Plants", "Uralsvyazinform", "Tsaritsyno", publishing houses "Education", "Eksmo", Ministry information technologies and communications of the Russian Federation, the Ministry of Regional Development of the Russian Federation, the Murmansk port, Rosprirodnadzor, the administrations of the Arkhangelsk, Nizhny Novgorod, Tomsk regions and the Krasnoyarsk Territory, the Avantix company.

However, when making any changes, it is necessary to adhere to one of the main principles of marketing: first of all, when creating or changing a product, it is necessary to take into account the wishes and interests of the consumer.

This principle is the first step towards a successful and prosperous business. But attitude towards consumers alone is not enough; it is necessary to create a certain competitive advantage that will allow it to overtake competitors in the chosen niche.

Creating an advantage

The term “competitive advantage” means an exclusively positive difference between a product and the products of competitive organizations. It is this advantage that is the factor by which the consumer chooses this product, and not the product of competing companies. A competitive advantage can be, for example, the quality of a product or service.

When creating a competitive advantage, it is important to adhere to two basic principles:

• This benefit should be really important to the consumer;
• The consumer must see and feel the competitive advantage.

Despite such a great efficiency in creating a competitive advantage, it must be remembered that competitors will still determine this advantage after a while and apply it to their products.

However, as practice shows, this time is quite enough to recoup costs, get significant profits and overtake direct competitors.

The creation of a competitive advantage should not take huge budgets of the company, therefore, it is necessary to use a certain methodology that allows not only to create a competitive advantage, but also to significantly reduce the costs of this process.

In this technique, four main stages can be distinguished, each of which is an integral part of the entire process of creating product benefits:

• Segmentation;
• Specialization;
• Differentiation;
• Concentration.

Segmentation

In this case, the concept of a segment hides end consumers who are looking for this or that type of product with certain parameters. In other words, each consumer has certain needs and interests, based on which he chooses required products... Thus, all consumers can be divided into groups of requests.

When carrying out (to individuals), sex characteristics, age characteristics, place of residence, presence vehicle etc.

In addition, sometimes more detailed consumer data is used, that is, targeting is carried out. On the other hand, customers can be organizations to which the product is supplied. In this case, segmentation is carried out according to the organization's belonging to a certain type: store, dealer, manufacturer, etc.

One of the main parameters of segmentation in this case is the number of the company, knowing which, you can easily determine the total amount of products passing through the organization.

After identifying the signs of segmentation and identifying the future competitive advantage, it is necessary to apply the usual marketing tools for product promotion: product advertising, direct introduction of the product in the company, sending letters with a request to purchase the product and other methods.

Of course, all of these methods have a big problem: there is no guarantee that the company will decide to purchase the product. In this regard, there is a more practical way - the implementation of segmenting consumers based on the problems present in this area.

Surely every business has a bottleneck that arises from the fact that consumers cannot find what they need. For example, customers of a butcher shop want a certain type of meat to cost 250 rubles instead of 300 rubles.

Or so that the delivery of pizza home is carried out not in one hour, but in 30 minutes. Thus, segmentation is carried out according to unsatisfied consumer requests.

It is quite easy to assess such requests, for example, by a regular survey of potential consumers. Polls have always yielded the most effective results. After analyzing the results of the survey, the most acute problem is selected and a competitive advantage is built on its basis. Thus, the promoted products will be associated by the target audience with this particular competitive advantage.

Specialization

Identifying problems in a certain segment of the market is only half the trouble. It is necessary to decide on one problem that needs to be eliminated and made an advantage. However, this is not as easy as it seems. The choice of a specific problem for its further solution depends on a number of factors, which include money, availability certain conditions, staff, time.

In particular, time, money and personnel are the determining criteria in choosing a specific problem. After all, with a large budget, unlimited time and specialized personnel, you can solve any problems. Therefore, before choosing, it is necessary to correctly assess the available resources.

An equally important step is to assess the importance of the problem. The relevance and acuteness of a specific problem determine the success of the work of a competitive advantage. That said, don't pick a problem that other organizations can easily fix. And, of course, do not forget about the eternal problems that exist in every market segment.

It's about price, staff and range. Each consumer always wants the purchased products to be of the highest quality and cheapest in a huge assortment, and the service staff did everything to ensure that he was satisfied and arrived in a good mood.

These problems cannot be completely and permanently eradicated, since nothing is ideal. But you can reduce the severity of the problem by increasing the quality, reducing the cost of products, expanding the range and recruiting qualified personnel.

Evaluating all the factors and criteria presented above, it is required to choose the most suitable problem that will be able to cope with. At the same time, it is important to remember that the more acute the problem is, the more effective it will be to create a competitive advantage, and the longer this advantage will last. In this regard, the difficulty of the entire process of creating a competitive advantage is only a plus, and not vice versa.

Differentiation

Having decided on the problem that needs to be solved, that is, after identifying a competitive advantage, it is necessary to start advertising. The stage of differentiation as a whole consists in the implementation of various types of advertising.

At the same time, it is necessary to advertise not just a company, service or product, but to advertise with an emphasis on the chosen competitive advantage. Thus, the consumer will know that this particular product has a certain advantage that he has been looking for from other companies for so long.

At the same time, it is not prohibited to use various images and graphic techniques, slogans and quotes, the main thing is that the emphasis is on the competitive advantage of the product.

But so that it is not short, since all consumers have different inertia in the perception of advertising, that is, a certain period during which the target audience gets used to the advertising material. This period is different for all groups.

Thus, for individuals, the inertia of perception of advertising is usually up to 6 months, and for organizations - up to several tens of months. Of course, this indicator depends on the specifics of the product being promoted and the business as a whole.

Concentration

The stage of concentration is equally important in creating a competitive advantage, since it is negligence, relaxation and distraction that can cause failure. For the most effective creation Competitive Advantage is encouraged to make this task a top priority by communicating to all employees of the company. It is this pace and daily work on this problem that guarantee the continued success of the product.

Don't forget about re-segmentation, which is recommended annually. It will not only help to identify new problems in a specific market segment, but also determine the current state of affairs regarding the previously selected competitive advantage, which will make it possible to more accurately assess the company's behavior strategy in the market and draw the right conclusions.

Combining all the stages, and competently performing each of them, it is important to remember that creating a competitive advantage is a rather complicated and time-consuming process that requires considerable financial and time costs. Therefore, the stages of segmentation and specialization are so important for choosing a problem and assessing the possibilities of solving it.

If there is a financial opportunity, re-segmentation is often useful, but in its own region, in the region of the manufacturer. With a professional and competent approach due to the competitive advantage, the company makes a significant step forward.

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In this article, you will learn:

• What are the types of competitive advantages of the company
• What are the main competitive advantages of the company
• How is the formation and assessment of the company's competitive advantages
• How to use competitive advantages to increase sales

Over time, humanity reaches new heights, gaining more and more knowledge. This also applies to business. Each firm is on a hunt for the most lucrative marketing solutions, trying to do things differently and showcase their products in the best possible light. All enterprises sooner or later face a competitive struggle, and therefore the competitive advantages of a company play an important role in the market, which help the consumer to make the choice of a product.

What are the competitive advantages of the company

Competitive advantages companies are those characteristics, properties of a brand or product that create a certain superiority for the company over direct competitors. The development of the economic sphere is impossible without competitive advantages. They are part of the corporate identity of the firm and also provide protection against attacks from competitors.

The sustainable competitive advantage of a company is the development profitable plan development of the company, with the help of which its most promising opportunities are realized. Such a plan should not be used by any real or intended competitive companies, and the results of the implementation of the plan should not be adopted by them.

The development of the company's competitive advantages is based on its goals and objectives, which are achieved in accordance with the position of the company in the market for goods and services, as well as the level of success in their implementation. The reform of the functioning system should create the basis for the effective development of the factors of the company's competitive advantages, as well as create a strong relationship between this process and the existing market conditions.

What are the types of competitive advantages of the company?

What competitive advantages of the company can you highlight? There are two types of competitive advantage:

1. Artificial Competitive Advantages: individual approach, advertising campaigns, guarantee and so on.
2. Natural competitive advantages of the company: cost of products, customers, competent management, and so on.

An entertaining fact: if a company does not strive to come out ahead in the market of goods and services, referring itself to a number of similar enterprises, it somehow has natural competitive advantages. In addition, it has every opportunity to develop artificial competitive advantages for the company, spending a certain amount of time and effort on this. This is where all the knowledge about competitors is needed, since their activities need to be analyzed first.

What is the analysis of the company's competitive advantage for?

An interesting note about Runet: as a rule, about 90% of entrepreneurs do not analyze their competitors, and also do not develop competitive advantages using this analysis. There is only an exchange of some innovations, that is, firms adopt the ideas of competitors. It doesn't matter who first came up with something new, it will still be "taken away". This is how these clichés came to light:

• Highly qualified specialist;
• Personal approach;
• Highest quality;
• Competitive cost;
• First class service.

And others, which in fact do not represent the company's competitive advantages, since no self-respecting company will declare that its products are of poor quality, and the staff are newcomers.

Oddly enough, you can look at it from the other side. If the competitive advantages of companies are minimal, then it is easier for start-up firms to develop, that is, to gather their potential customers who receive a wider choice.

Therefore, it is necessary to competently work out strategic competitive advantages that will provide customers with a profitable purchase and positive emotions... Customer satisfaction should come from the business, not from the product.

What are the sources of the company's competitive advantage

There is a fairly well-established structure of the company's competitive advantages. At one time, Michael Porter identified three main sources for developing a company's competitive advantage: differentiation, cost, and focus. Now, in more detail about each of them:

• Differentiation

The implementation of this strategy of competitive advantages of the company is based on more efficient provision of services to the clients of the company, as well as demonstration of the company's products in the best possible light.

• Costs

The implementation of this strategy is based on the following competitive advantages of the company: minimum costs for employees, production automation, minimum costs of scale, the ability to use limited resources, as well as the use of patented technologies that reduce production costs.

• Focus

This strategy is based on the same sources as the previous two, but the company's accepted competitive advantage covers the needs of a narrow circle of buyers. Customers outside this group are either dissatisfied with such a competitive advantage of the company, or it does not affect them in any way.

The main (natural) competitive advantages of the company

Each firm possesses natural competitive advantages of the company. But not all enterprises cover them. This is a group of companies whose competitive advantages are either obvious or disguised as clichés, they believe. So, the main competitive advantages of the company are:

1. Price... Whatever one may say, one of the main advantages of any company. If the prices for the firm's goods or services are lower than competitive prices, as a rule, this price gap is indicated immediately. For example, "prices are 15% lower" or "we offer retail goods at a wholesale price ". It is very important to indicate prices in this way, especially if the company operates in the corporate sphere (B2B).
2. Timing (time)... Be sure to indicate the exact delivery time of products for each of its types. This is a very important point in developing a company's competitive advantage. Here it is worth avoiding inaccurate definitions in terms of time ("we will deliver quickly", "we will deliver just in time").
3. Experience... When the staff of your company are professionals in their field who know all the "pitfalls" of doing business, then convey this to consumers. They like to cooperate with specialists who can be contacted for all questions of interest.
4. Special conditions. They may include the following: exclusive supply offers (discount system, convenient location of the company, extensive warehouse program, accompanying gifts, payment after delivery, and so on).
5. Authority. The credibility factor includes: various achievements of the company, prizes at exhibitions, competitions and other events, awards, famous suppliers or buyers. All this increases the popularity of your company. A very significant element is the status of a professional expert, which involves the participation of your employees at various conferences, in advertising interviews, on the Internet.
6. Narrow specialization. This type of competitive advantage is best explained with an example. The owner of an expensive car wants to replace some parts in his car and he has a choice: go to a specialized salon that serves only cars of his brand, or to a standard auto repair shop. Of course, he will choose a professional salon. This constitutes a unique selling proposition (USP) component that is often used as a competitive advantage for a company.
7. Other actual benefits. Such competitive advantages of the company include: a wider range of products, patented manufacturing technology, the adoption of a special plan for the sale of goods, and so on. The main thing here is to stand out.

Artificial competitive advantages of the company

Artificial competitive advantage are able to help the company tell about itself if it does not have special offers. This can come in handy when:

1. The firm has a setup similar to that of its competitors (the competitive advantages of companies in a particular field of activity are the same).
2. The firm is located between large and small enterprises (it does not have a large assortment of goods, does not have a narrow focus and sells products at a standard price).
3. The firm is at an early stage of development with no particular competitive advantages, customer base or popularity among consumers. This often happens when specialists decide to leave the workplace and create their own company.

In such cases, it is necessary to develop artificial competitive advantages, which are:

1. Added value. For example, a firm sells computers without being able to compete on price. In this case, you can use the following competitive advantage of companies: install an operating system and the necessary standard programs on a PC, and then slightly increase the cost of equipment. This is the added value, which also includes all sorts of promotions and bonus offers.
2. Personal adjustment. This competitive advantage of the company works well if competitors hide behind standard clichés. Its purpose is to demonstrate the face of the company and apply the WHY-formula. Successful in every field of activity.
3. A responsibility... Quite an effective competitive advantage of the company. It goes well with personality tuning. A person likes to deal with people who can vouch for their products or services.
4. Guarantees... As a rule, guarantees are of two types: for circumstances (for example, a liability guarantee - "if you are not given a check, we will pay for your purchase") and for a product or service (for example, the opportunity for a consumer to return or exchange goods within a period of up to one months).
5. Reviews... Unless, of course, they are ordered. For potential customers, the status of the person who speaks about your company is important. This advantage works great when reviews are presented on a special form with a certified signature of the person.
6. Demonstration... It is one of the main competitive advantages of the company. If the firm does not have advantages, or they are not obvious, then it can make an illustrated presentation of its product. If the company works in the service sector, then you can make a video presentation. The main thing here is to correctly focus on the properties of the product.
7. Case... But there may not be any cases, especially for newbie firms. In this case, artificial cases can be developed, the essence of which is to provide services either to ourselves, or to a potential buyer, or to an existing client on the basis of offset. Then you will receive a case that will show the level of professionalism of your company.
8. Unique selling proposition. It has already been mentioned in this article. The meaning of USP is that the company operates with a certain detail, or provides data that distinguishes it from competitors. This competitive advantage of the company is effectively used by the Practicum Group, which offers training programs.

Personnel as a competitive advantage of the company

Unfortunately, today not every management sees an excellent competitive advantage of the company in the staff. Based on the developed strategies and goals, firms come to the need to build, develop and strengthen the personality traits employees. But at the same time, companies come to the need to apply a certain combination of developed strategies (this also applies to internal management).

Based on this, you need to pay attention to the pair important points: identify and develop the qualities of personnel, creating a competitive advantage for the company, and explain the usefulness of investing in this resource.

If the goal of management is to create a competitive advantage of the company in the person of personnel, then work on personal characteristics employees, as well as the concept of the essence and effectiveness of aspects that are identified in team work (emergence and synergy).

The process of the formation of the team as a competitive advantage of the company is not complete without the resolution of some points that must be taken into account by the management of the company:

1. Competent organization of employees' activities.
2. The interest of employees in the successful achievement of the assigned tasks.
3. Formation of the team's desire to actively participate in the process of obtaining high results.
4. Supporting the personal qualities of employees necessary for the company.
5. Developing commitment to the company.

It is worth paying attention to the essence of the proposed aspects that form the company's competitive advantage in the person of its personnel.

Quite a few well-known large organizations win in the competition precisely due to the effective use of personnel as a competitive advantage of the company, as well as due to the gradual increase in the level of employee interest in achieving the assigned tasks. The main criteria for success in the process of using all possible resources are: the desire of employees to remain part of the company and work for its benefit, the dedication of the personnel to their company, the confidence of the personnel in success and the sharing of the principles and values ​​of their company.

It is characterized by the following elements:

• Identification... Assumes that employees have a sense of pride in their firm, as well as the factor of assignment of goals (when personnel take the tasks of the firm for their own).
• Involvement... It assumes the desire of employees to invest their own efforts, to actively participate in achieving high results.
• Loyalty... Assumes psychological attachment to the firm, the desire to continue to work for its good.

These criteria are extremely important in the formation of the company's competitive advantage in the person of its personnel.

The degree of employee loyalty is closely related to the level of response of the staff to external or internal incentives.

When developing a company's competitive advantage in the person of its personnel, it is worth noting some aspects that reveal employee loyalty:

• Dedicated employees strive to improve their skills.
• Loyal employees lean on their views without being manipulated or otherwise negatively influenced.
• Dedicated employees strive to maximize their success.
• Dedicated employees are able to take into account the interests of all team members, to see something beyond the boundaries of the goal.
• Dedicated employees are always open to something new.
• Dedicated employees have more high degree respect not only for yourself, but also for other people.

Devotion is a multifaceted concept. It contains both the ethics of the team, and the degree of its motivation, and the principles of its activity, and the degree of satisfaction with the work. That is why a competitive advantage in the person of staff is one of the most effective. This dedication is reflected in the relationships that employees have with everyone around them in the workplace.

When management wants to create a competitive advantage in the face of staff, the challenge is to build employee loyalty. Prerequisites for formation are divided into two types: personal characteristics of employees and working conditions.

The competitive advantages of the company in the person of the personnel are formed with the help of the following personal characteristics of the employees:

• Reasons for choosing this field of activity.
• Work motivation and labor principles.
• Education.
• Age.
• Family status.
• Existing work ethics.
• Convenience of the territorial location of the company.

The competitive advantages of the company in the person of the personnel are formed using the following working conditions:

• The level of interest of employees in achieving the maximum success of the firm.
• Employee awareness level.
• The degree of stress in the employees.
• The degree to which important employee needs are met (salary, working conditions, the ability to express their creativity, and so on).

But it is necessary to take into account the dependence of loyalty on the personal characteristics of the personnel and the atmosphere in the companies themselves. And therefore, if management has set itself the goal of creating a competitive advantage for the company in the person of personnel, first it needs to analyze how much the company has exacerbated problems that can negatively affect the loyalty of employees.

Brand as a competitive advantage of the company

Today, in order to fight competitors, companies include additional services in the list of basic ones, introduce new methods of doing business, prioritize both personnel and each consumer. The company's competitive advantages arise from market analysis, development of a plan for its development, obtaining important information... Firms in the process of competition and constant change need to work both with the internal management of the organization, and with the development of a strategy that provides a strong position of stable competitiveness and allows you to monitor the changing situation in the market. Today, in order to maintain competitiveness, it is important for firms to master modern principles of management and production of products that will create a competitive advantage for the company.

The trade mark (brand) of a company, if used correctly, can increase its income, increase the number of sales, replenish the existing assortment, inform the buyer about the exclusive advantages of a product or service, stay in this field of activity, and also introduce effective development methods. This is why a brand can serve as a competitive advantage for a company. Leadership that does not take this factor into account will never see its organization among the leaders. But a trademark is a rather expensive version of a company's competitive advantage, which requires special management skills, knowledge of firm positioning methods, and experience in working with a brand. There are several stages in the development of a trademark related precisely to the theme of its relationship with competition:

1. Goal setting:
   • Formulation of the goals and objectives of the company (the initial stage for the formation of any competitive advantages of the company).
   • Establishing the importance of the brand within the company.
   • Establishing the required position of the brand (characteristics, durability, competitive advantages of the company).
   • Establish measurable brand criteria (KPI).

1. Development planning:
   • Assessment of existing resources (the initial stage for the formation of any competitive advantages of the company).
   • Approval of customers and all performers.
   • Approval of the terms of development.
   • Identification of additional goals or obstacles.

1. Assessment of the existing position of the trademark (refers to the existing trademarks):
   • Brand popularity among customers.
   • Brand awareness of potential customers.
   • Brand loyalty among potential customers.
   • Brand loyalty.

1. Assessment of the market situation:
   • Assessment of competitors (the initial stage for the formation of any competitive advantages of the company).
   • Assessment of a potential consumer (the criteria are preferences and needs).
   • Sales market assessment (supply, demand, development).

1. Formulation of the essence of the trademark:
   • Purpose, position and use of the brand for potential customers.
   • Exclusivity (competitive advantages for the company, value, characteristics).
   • Trademark attributes (components, appearance, main idea).

1. Planning brand management:
   • Work on the development of marketing elements and clarification of the brand management process (entered in the organization's brand book).
   • Appointment of employees, responsible for promoting the brand.

1. Introduction and increasing the popularity of the trademark (it is on this stage that the success of the company's competitive advantages in terms of brand promotion depends):
   • Development of a media plan.
   • Ordering advertising materials.
   • Distribution of promotional materials.
   • Multifunctional loyalty programs.

1. Analysis of the effectiveness of the brand and the work done:
   • Assessment of the quantitative characteristics of the brand (KPI) established at the first stage.
   • Comparison of the results obtained with the planned ones.
   • Amendments to the strategy.

A necessary criterion for the effective implementation of a trademark as a competitive advantage of a company is adherence to a single corporate style, which is a visual and semantic integrity of the company's image. The components of the corporate style are: product name, trade mark, trademark, motto, corporate colors, employee uniforms and other elements of the company's intellectual property. Corporate style is a combination of verbal, color, visual, individually developed constants (components) that guarantee the company the visual and semantic integrity of the company's products, its information resources, as well as its general structure. Corporate style can also act as a competitive advantage for a company. Its existence suggests that the head of the company aims to make a good impression on customers. The main purpose of branding is to create a positive feeling in the client, which he experienced when purchasing the products of this enterprise. If other components of marketing are at their best, then the corporate style is able to create some competitive advantages for the company (precisely within the framework of the topic of opportunities for competition):

• It has a positive effect on the aesthetic position and visual perception of the company;
• Strengthens the efficiency of collective work, can rally staff, increases the interest of employees and the feeling of their need for the organization (the company's competitive advantage in the person of personnel);
• Contributes to the achievement of integrity in the advertising campaign and other marketing relationships of the organization;
• Reduces the cost of developing communications;
• Increases the effectiveness of advertising projects;
• Reduces the cost of selling new products;
• It makes it easier for clients to orientate themselves in information flows, and allows them to accurately and quickly find the company's products.

A trademark association consists of four elements that are also important to consider when developing a company's competitive advantage:

1. Intangible criteria. This includes everything that has to do with information about a brand: its idea, degree of popularity and distinctive features.
2. Tangible criteria. Here, the impact on the senses plays a very important role. These criteria are functional (a special form for more convenient use, for example), physical, and also visual (display of a trademark on advertising materials). Both tangible and intangible criteria are essential in developing a company's competitive advantage.
3. Emotional characteristics. A brand represents a company's competitive advantage when it evokes positive emotions and customer confidence. It is also necessary to use tangible criteria (for example, a unique advertising campaign). Experts say that these criteria create an opinion among customers about the intangible characteristics of the brand.
4. Rational characteristics. They are based on functional criteria of the product (for example, fuel-efficient vehicles from Volkswagen or Duracell batteries that last "up to ten times longer"), the way they communicate with consumers (for example, Amazon), as well as relationships between customers and the company that owns the brand (promotions for regular customers from various airlines). Taking into account rational characteristics is very important in the formation of a company's competitive advantages.

When developing a company's competitive advantages, it is necessary to know the main carriers of the corporate style components:

• Service components (large stickers, large panels, wall-mounted calendars, etc.).
• Office work components (corporate letterheads, registration forms, blocks of paper materials for notes, and so on).
• Advertising on paper (catalogs, all types of calendars, booklets, brochures, and so on).
• Souvenir products (pens, T-shirts, office supplies and so on).
• Elements of propaganda (materials in the media, decoration of halls for various events, propaganda brochure).
• Documentation (business cards, passes, ID cards for staff, and so on).
• Other forms (corporate banner, packaging materials with company symbols, employee uniforms, and so on).

The brand also affects the competitive advantage of the company in the person of its personnel, contributing to the cohesion of employees who feel they are important to the organization. It turns out that a trademark is an element of the development process of a company, increasing its revenues and the number of sales, as well as contributing to the replenishment of the product range and increasing customer awareness of all the positive aspects of a service or product. These conditions also strengthen the company's competitive advantages.

Competitive advantages of the company: examples of global giants

Example # 1. Apple's competitive advantages:

1. Technologies. This is one of the main competitive advantages of an innovative company. Each element of the software and technological support is worked out within the framework of one enterprise, and therefore the components are in perfect harmony in the aggregate. This makes the work of developers easier, ensures the product is of high quality and reduces costs of expenses. For the consumer, comfort in use and elegant appearance devices. A complete set of necessary parts and programs is not only a competitive advantage for the company, but also a fact that compels consumers to purchase new gadgets.
2. HR. One of the leading competitive advantages of the company is its personnel. Apple hires highly qualified professionals (the most able-bodied, creative and advanced) and tries to keep them in the company, providing decent wages, various bonuses for personal achievements. In addition, it saves the costs of unskilled workers and child labor at the suppliers Inventec and Foxconn.
3. Consumer confidence. With the help of an effective PR strategy and the strategy of a marketing company, an organization manages to create a permanent customer base and also increase the popularity of the brand. All this increases the success of using the competitive advantages of international Apple... For example, the company collaborates with promising musicians (YaeNaim, Royksopp, Feist, and so on). The most famous organizations (for example, SciencesPoParis) conclude contracts for the complete packaging of their libraries with the company's goods. There are about 500 stores around the world selling only Apple products.
4. Innovation. This is the main competitive advantage of an innovative company. By investing in R&D, the organization responds quickly to emerging customer needs. An example is the Macintosh developed in 1984, which gained commercial popularity and had graphic elements, in demand among users, and also had changes in the command system. In 2007, the first iPhone was released, which gained immense popularity. The MacBookAir has not lost ground, remaining the thinnest laptop of our time. These competitive advantages of the company have big success and they are undeniable.
5. Organization of the supply chain. The popularity of the Apple brand contributes to the fact that the company has entered into many productive contracts with supplying factories. This provides the firm with its own supplies and cuts the supply for competitors who need to purchase the necessary components on the market for more high cost... This is a great competitive advantage for the company and weakens the competition. Apple often invests in supply chain improvements to ensure more income... For example, in the 90s, many companies transported computers by water, but Apple overpayed about $ 50 million on Christmas Eve to transport products by air. This competitive advantage of the company eliminated competitors, because they did not want or did not guess to transport the goods in this way. Moreover, the company maintains strict control over its suppliers, constantly requesting documentation of expenses.

Example No. 2. The competitive advantages of the Coca-Cola company

1. .Main advantages The main competitive advantage of the Coca-Cola trading company is its popularity, because it is the largest brand among the producers of soft drinks, with about 450 types of products. This trademark is the most valuable in the world, it includes 12 other manufacturing companies (Sprite, Fanta, Vitaminwater, Coca-Cola Lite, and so on). The company's competitive advantage also lies in the fact that it is the first supplier of all types of soft drinks.
2. Technologies from Coca-Cola(this is the main competitive advantage of the company). There were many who wanted to know the secret recipe for drinks. This recipe can be found in a Trust Company Of Georgia bank safe in the United States. Only a few top managers of the organization can open it. The already made base of the drink is sent to the manufacturing plants, where it is mixed with water using a specialized, precise process. Today, creating this basis for a drink is far from an easy task. The trick is that the composition of the drink contains "natural flavors", the specific elements of which are not specified.
3. Innovations(this includes the company's competitive advantage in the field of ecology):
   • The company wants to boost low sales with modern equipment. Such machines are capable of dispensing more than 100 types of drinks and making original mixes (light and diet cola, for example).
   • Coca-Cola's environmental competitive advantage lies in the development of the Reimagine recycling program. This contributes to the fact that the management of the company will be easier to carry out the disposal and sorting of waste. Such an automatic machine can be used to put containers made of plastic and aluminum, excluding the sorting process. In addition, the device calculates points that go to the purchase of company drinks, branded bags and attending various entertainment projects.
   • This competitive advantage of the company works great as the company strives to produce an environmentally friendly product. In addition, Coca-Cola is developing a program to use eStar vehicles that operate without harmful emissions through electric motors.
4. Geographic advantage. The geographic competitive advantage of the company as a construction company lies in the fact that it sells its products in 200 countries around the world. For example, in our country there are 16 Coca-Cola manufacturing plants.

Example No. 3. Competitive advantages of Nestlé.

1. Product range and marketing strategy. The company's competitive advantage lies in the fact that it operates with a wide range of products, as well as a large assortment of brands that strengthen it in the product market. The products consist of approximately 30 main brands and a huge number of local (local) brands. Nestlé's competitive advantage lies in creating a national strategy that is based on the needs of the people. For example, the Nescafe coffee drink, which has a different production structure for different countries. It all depends on the needs and preferences of the buyer.
2. Effective management and organization structure. A very significant competitive advantage of the company. The indicator of success is the increase in sales of the company by 9% in 2008, which was considered a crisis year. The organization carries out successful personnel management and effective financing of new projects and programs. These programs are the purchase of shares in other firms, even competing ones. Thus, the company's competitive advantage lies in its expansion. In addition, the decentralized management system of the company and the competent management of its structures help Nestlé to quickly respond to market changes.
3. Innovation. An extremely significant competitive advantage of the company lies in the fact that it is the largest investor in scientific projects and technological innovations that contribute to the development of the company through the introduction of technologies that meet the needs of customers, differentiate products, and improve the taste experience. Moreover, innovations are used to modernize manufacturing processes. This competitive advantage of the company solves the issue of optimizing the manufacture and production of an environmentally friendly product.
4. Global presence in world markets. The undeniable competitive advantage of the company, which is based on the history of its creation, since from the moment of its appearance on the market it has gradually expanded and improved, covering the whole world. Nestle is interested in bringing the consumer closer to the company. It allows its divisions to independently appoint managers, organize the production and delivery process of products, and cooperate with reliable suppliers.
5. Qualified personnel. This competitive advantage of the company in the person of its personnel lies in the high costs of the company for training its employees at the international level. Nestle is building a highly qualified management team from its employees. The headquarters of workers in our country numbers about 4,600 people, and the world human resource the company has about 300 thousand employees.

Example No. 4. Toyota's competitive advantages

1. High product quality... The main competitive advantage of the company is a top-level product. In 2015, about 120 thousand cars of this brand were sold in our country. The fact that this competitive advantage of the company is decisive, said its ex-president Fujio Cho. And therefore, buying a Toyota car, the consumer is guaranteed a set of modern technological developments.
2. Wide range of products. Toyota salons operate with all models of the brand's cars: Toyota Corolla (compact passenger car), Toyota Avensis (versatile and comfortable car), Toyota Prus (new model), Toyota Camry (a whole series of cars is presented), Toyota Verso (car for the whole family), Toyota RAV4 (small SUVs), Toyota LandCruiser 200 and LandCruiserPrado (popular modern SUVs), Toyota Highlander (all-wheel drive crossovers), Toyota Hiace (comfortable, small car). This is an excellent competitive advantage of the company, because a model set of cars is presented to consumers with different preferences and material capabilities.
3. Effective marketing. An excellent competitive advantage of the company is the implementation of vehicle certification with checks from Toyota Tested. Customers who buy such a car in our country acquire the opportunity to receive round-the-clock assistance, which consists in the constant work of services for technical support... The company's cars can be purchased under the Trade-In program, which simplifies the purchase due to the lucrative offers from Toyota.
4. The customer comes first. Another important competitive advantage of the company, for which Toyota developed the Personal & Premium program in 2010, presenting it at the international car show in Moscow. The program includes the availability of favorable loan offers when buying a car. Experts from the New Car Buy Survey found that Russian consumers are most loyal to Toyota.
5. Effective company management... This competitive advantage of the company is expressed in the availability of an effective ERP program that can control the entire set of activities for the sale of Toyota cars in Russia online. The program was developed in 2003. The uniqueness of this program in Russia lies in its combination with the position in the market, with various peculiarities of doing business in our country, with our existing laws. Another competitive advantage of the company is its holistic corporate structure, which helps the company and its partners to quickly operate with data on the availability of certain product models in showrooms, warehouses, and so on. Moreover, Microsoft Dynamics AX contains all the documentation on the transactions carried out with vehicles.

Example No. 5. Competitive advantages of the Samsung Group

1. Consumer confidence. The company was founded in 1938 and over many years of hard work has achieved tremendous results (for example, 20th place in brand price, second place in equipment). Consumer confidence is the most important competitive advantage of the Samsung Group. The organization for work with documents turned out to be "the most reliable" in the world. These are indicators that demonstrate how the history of the formation of the company, its brand name and customer confidence turn into a huge competitive advantage for the company.
2. Management of the company. This competitive advantage of the company lies in its vast experience in the field of management, as well as in constantly improving ways of managing in a changing market. For example, the recent restructuring of the firm in 2009 resulted in more independence among the company's divisions, thereby simplifying the entire management process.
3. Technologies. This competitive advantage of the company lies in the fact that it works with high technology... Samsung Group pioneered the technology of reciprocating and rotary compressors, optical fiber, energy application and concentration. In addition, the company has developed the thinnest lithium-ion power supplies. The company's competitive advantages as a construction company are manifested in the fact that it ranks first in the development of communication systems for business areas of activity and is moving forward in the field of creating technologies for gas and oil pipelines, as well as other areas of construction.
4. The presence of an innovative advantage of the company. This competitive advantage of the company lies in the fact that it works tirelessly in the field of modernization of equipment and innovative product components. The organization contains many scientific departments all over the world. They carry out research activities in the field of chemical current resources, software and various equipment. Samsung is implementing a scheme for promoting electrical engineering, is working on ways to retain energy resources. The company's competitive advantage is also the hiring of highly qualified employees from different parts of the world. In addition, the corporation is partnering with the best technological universities in the world, investing in their developments and ideas.
5. Successful marketing system of the company. The company's competitive advantage is also a strong marketing campaign in many areas of activity (in its competition with Apple, Samsung conducted a rather aggressive advertising policy, trying to surpass it). A division of the company called "Cheil Communications" operates in this area. It works in the field of advertising, marketing analysis and analysis of the market situation. In addition, an element of the company's competitive advantage is its assistance in the field of charity, which attracts consumers to it and increases its popularity. The corporation also has special charity departments.

How is the formation of the company's competitive advantages from scratch

Of course, any organization has its pros and cons, even when it does not occupy a leading position and does not stand out in the market. To analyze the causes of these phenomena and develop effective competitive advantages for the company, you need to turn, oddly enough, to your own consumer, who, like no one else, is able to correctly assess the situation and point out the shortcomings.

Customers can point to different competitive advantages of the company: location, reliability, simple preference, and so on. It is necessary to compile and evaluate this data in order to be able to increase the profitability of the enterprise.

However, this is not enough. Write down the advantages and disadvantages (what you have and what you don't) of your firm in writing. To develop an effective competitive advantage for a company, it is worthwhile to clearly and specifically specify all the details, for example:

Abstraction	Specifics
Reliability guarantee	Our reliability is our feature: we insure transportation for 5 million rubles.
Guaranteed professionalism	About 20 years of experience in the market and more than 500 developed programs will help us understand even the most difficult situations.
We produce high quality products	We are three times ahead of GOST in terms of technical product criteria.
Personal approach to everyone	We say no! briefs. We work only individually, working out all the important details of the business.
First class service	Technical support 24 hours seven days a week! We solve even the most difficult problems in just 20 minutes!
Low cost of production	Prices are 15% below market prices due to the production of our own raw materials.

Not all the competitive advantages of the company should be reflected in this block, but here it is important to indicate all the pros and cons of the organization, from which it will be necessary to build on.

Concentrate, divide the piece of paper in two, and start bringing in the pros and cons of your firm. Then assess the disadvantages and turn them into a competitive advantage for the company. For instance:

Flaw	Turning into an advantage
Distance of the company from the city center	Yes, but the office and warehouse are located nearby. Then buyers will be able to park their car without any problems and evaluate the quality of products right on the spot.
The price is higher than the competitive	The price includes additional services (for example, installation of an operating system and all major programs on a computer).
Long delivery time	But the assortment includes not only a standard set of products, but also exclusive products for individual use.
Newbie firm	But the company has modern qualities (mobility, efficiency, a new outlook on things, and so on).
Limited selection of products	But confidence in the originality of a certain brand and a more detailed knowledge of the products.

It's not all that complicated here. Then, with the help of this list, it is necessary to develop the competitive advantages of the company from the primary to the most insignificant. They should be clear to the potential client, concise and effective.

There is also an aspect kept secret by many firms. It can be used periodically, when other competitive advantages of the company cannot be realized, or when it is necessary to activate the effectiveness of its merits. Organizational benefits must be intelligently combined with customer satisfaction.

Illustrative examples:

• It was: Work experience - 15 years.

• Became: Reduced costs by 70%, thanks to many years of experience of the company

• It was: Reduced prices for goods.

• Became: Production costs are 20% lower and shipping costs 15% lower thanks to our own vehicles.

How the competitive advantages of a company are assessed

The success of a company's competitive advantages can be assessed by fully assessing the merits and demerits of the firm's competitive position and comparing the analysis results with competitors' indicators. The analysis can be carried out by referring to the method of indicative assessment of KFU.

A well-crafted action plan can turn the disadvantages of rival firms into a competitive advantage for your company.

The criteria for this analysis can be:

• The firm's stability in protecting its position within the framework of market changes in the field of its activities, tough competition and competitive advantages of competing companies.
• Whether the company has effective competitive advantages, or lack, or lack thereof.
• Opportunities for achieving success in the competitive struggle when operating with this action plan (the company's position in the competitive system).
• The firm's level of stability in the current period.

The analysis of competitors' activities can be carried out by the method of weighted or unweighted estimates. The former are determined by multiplying the firm's assessment for a certain indicator of competitive capabilities (from 1 to 10) by its weight. The latter presuppose the fact that all performance factors are equally important. A company's competitive advantages are most effectively realized when it has the highest marks.

The last stage assumes that the company's specialists must identify strategic mistakes that negatively affect the formation of the company's competitive advantages. An effective program must include ways out of any difficult situation.

The task of this stage is to create an integral list of problems, the overcoming of which is of paramount importance for the formation of the competitive advantages of the company and its strategy. The list is displayed on the basis of the results of the assessment of the firm's activities, the market situation and the position of competitors.

It is impossible to identify these problems without addressing the following points:

• In which cases adopted program unable to protect the company from external and internal problem situations?
• Does the adopted strategy provide a decent degree of protection against the current actions of competitors?
• To what extent does the adopted program support and align with the company's competitive advantages?
• Is the adopted program effective in this area of ​​activity, taking into account the impact of driving forces?

Strategic management is designed to ensure the firm's long-term survival. Of course, when it comes to survival in the market competitive environment, there is no question that the company can drag out a miserable existence. It is very important to understand that as soon as someone who is associated with the company is not happy about this relationship, he leaves the company, and after a while it dies. Therefore, survival in the long term automatically means that the firm is quite successfully coping with its tasks, bringing satisfaction with its activities to those who enter the sphere of its business interaction. First of all, this applies to buyers, employees of the company and its owners.

The concept of competitive advantage

How can an organization ensure its long-term survival, what should be inherent in it so that it can cope with its tasks? The answer to this question is quite obvious: the organization must produce a product that will consistently find buyers. This means that the product should be, firstly, interesting to the buyer so much that he is ready to give money for it, and, secondly, the buyer is interested in more than a product similar or similar in consumer qualities produced by other firms. If a product has these two properties, then the product is said to have competitive advantages.

Consequently, a company can successfully exist and develop only if its product has competitive advantages. Strategic management is called upon to create competitive advantages.

Consideration of the creation and retention of competitive advantages involves the analysis of relations and, accordingly, the interaction of three subjects of the market environment. First, this is “our” company producing a certain product. e ct is a buyer who may or may not buy this product. Thirdly, these are competitors who are ready to sell their products to the buyer that can satisfy the same need that and a product manufactured by "our" firm. Central to this market love triangle is the buyer. Therefore, the competitive advantages of a product are the value contained in the product for the buyer, prompting him to buy this product. Competitive advantage does not necessarily arise from comparing “our” firm's product with those of competitors. It may be that there are no firms on the market offering a competitive product, nevertheless, the product of "our" firm is not sold. This means it doesn't have enough customer value or competitive advantage.

Types of competitive advantages

What creates a competitive advantage? It is believed that there are two possibilities for this. First, the product itself can have a competitive advantage. One kind of competitive advantage of a product is its price characteristic. Very often, a buyer purchases a product only because it is cheaper than other products with similar consumer properties. Sometimes a product is bought just because it is very cheap. Such purchases can occur even if the product has no consumer utility to the customer.

The second type of competitive advantage is differentiation. In this case, we are talking about the fact that the product has distinctive features that make it attractive to the buyer. Differentiation is not necessarily associated with consumer (utilitarian) qualities of the product (reliability, ease of use, good functional characteristics, etc.). It can be achieved due to such characteristics that have nothing to do with its utilitarian consumer properties, for example, due to the brand.

Second, in addition to the fact that a firm creates a competitive advantage in a product, it may try to create a competitive advantage for its product in its market position. This is achieved by securing the buyer or, in other words, by monopolizing part of the market. In principle, such a situation contradicts market relations, since in it the buyer is deprived of the opportunity to choose. However, in real practice, many firms manage not only to create such a competitive advantage for their product, but also to maintain it for a long time.

Competitive Advantage Strategy

There are three strategies for creating competitive advantage. The first strategy is leadership in price. With this strategy, the focus of the firm in the development and production of a product is cost. The main sources of value creation are:

Rational business management based on accumulated experience;

Economies of scale by reducing unit costs while increasing production;

Savings on diversity as a result of reducing costs due to the synergistic effect arising from the production of various products;

Optimization of intercompany relationships, which helps to reduce general company costs;

Integration of distribution networks and supply systems;

Optimization of the firm's activities over time;

Geographic location of the firm's activities, allowing to achieve cost savings through the use of local characteristics.

Bringing to life pricing strategy To create a competitive advantage for the product, the company should not forget that its product must at the same time correspond to a certain level of efficiency. Only in this case, price leadership can bring a significant effect. If the quality of the product of the price leader is significantly lower than the quality of similar products, then the creation of a price competitive advantage may require such a strong price reduction that it can lead to negative consequences for the firm. However, it should be borne in mind that the price leadership strategy and the differentiation strategy should not be confused, and even more so, one should not try to implement them at the same time.

Differentiationis the second strategy for creating competitive advantage. With this strategy, the company tries to give the product something distinctive, unusual, which the buyer may like and for which the buyer is willing to pay. A differentiation strategy is about making a product different from what competitors do. To achieve this, the firm has to go beyond the functional properties of the product.

Firms do not necessarily use differentiation to obtain a price premium. Differentiation can help expand sales by increasing the number of products sold or by stabilizing consumption regardless of fluctuations in market demand.

In the case of a strategy of creating competitive advantages through differentiation, it is very important to focus on consumer priorities and the interests of the buyer. Earlier it was said that a differentiation strategy involves creating a product that is unique in its own way, different from the products of competitors. But it is important to remember that for a competitive advantage to emerge, the product's unusualness, novelty, or uniqueness must have value for the customer. Therefore, the differentiation strategy assumes, as a starting point, the study of the interests of the consumer. This requires:

It is enough to clearly imagine not just who the buyer is, but who makes the decision on the purchase;

Study the consumer criteria by which a choice is made when purchasing a product (price, functional properties, guarantees, delivery time, etc.);

Determine the factors that form the customer's perception of the product (sources of information about the properties of the product, image, etc.).

After that, based on the possibilities of creating a product with an appropriate degree of differentiation and an appropriate price (the price should allow the buyer to purchase a differentiated product), the firm can begin to develop and manufacture this product.

A third strategy that a firm can use to create a competitive advantage in its product is focusing on the interests of specific consumers. In this case, the company creates its product specifically for specific buyers. Concentrated product creation is associated with the fact that either some unusual need of a certain group of people is satisfied (in this case, the company's product is very specialized), or a specific system of access to the product is created (a system for selling and delivering a product). By pursuing a strategy of concentrated creation of competitive advantages, the firm can use both price attraction of buyers and differentiation.

As you can see, all three strategies for creating competitive advantages have significant distinctive features that allow us to conclude that the firm should clearly define for itself what strategy it is going to implement, and in no case should these strategies be confused. At the same time, it should be noted that there is a definite connection between these strategies, and this should also be taken into account by firms when creating a competitive advantage.

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