External factors
Posted: Sun Dec 22, 2024 9:05 am
This type of competitive advantage is based on the product characteristics that allow you to stand out from your competitors and create increased value for your target audience. This factor creates conditions for increasing sales prices. Since competing products do not have such unique characteristics, they will not be able to affect your sales level even by reducing their cost.
The Importance of Building a email database indonesia Competitive Advantage
To determine external factors that will allow you to gain advantages over your competitors, you should conduct research aimed at analyzing consumer needs that are not covered by other companies. Then you need to find opportunities to satisfy these requests. The choice of an external factor for development determines the list of tools that will be used to achieve the company's goals of gaining advantages over other market participants.
First of all, you need to find out whether your company's product has such a characteristic.
Buyers often explain their choice of a particular product by its cost, which is lower than that of competitors. It is the price that often pushes consumers to make spontaneous purchases.
The next option for gaining an advantage over competitors is product differentiation. This refers to the presence of properties that provide greater attractiveness from the customer's point of view. Characteristics such as quality, ease of use, safety, and long service life can be decisive in this context. Gaining competitive advantages is influenced by the level of brand recognition or a sharp increase in its popularity against the backdrop of fashion trends or other similar factors.
The third option is related to the formation of a special market position of the product, which is ensured by the monopolization of a niche segment. Buyers are deprived of choice and will be forced to buy a certain product or service. It can be said that this method has nothing to do with market relations, which are formed under conditions of free competition, but many companies go exactly this way.
The Importance of Building a email database indonesia Competitive Advantage
To determine external factors that will allow you to gain advantages over your competitors, you should conduct research aimed at analyzing consumer needs that are not covered by other companies. Then you need to find opportunities to satisfy these requests. The choice of an external factor for development determines the list of tools that will be used to achieve the company's goals of gaining advantages over other market participants.
First of all, you need to find out whether your company's product has such a characteristic.
Buyers often explain their choice of a particular product by its cost, which is lower than that of competitors. It is the price that often pushes consumers to make spontaneous purchases.
The next option for gaining an advantage over competitors is product differentiation. This refers to the presence of properties that provide greater attractiveness from the customer's point of view. Characteristics such as quality, ease of use, safety, and long service life can be decisive in this context. Gaining competitive advantages is influenced by the level of brand recognition or a sharp increase in its popularity against the backdrop of fashion trends or other similar factors.
The third option is related to the formation of a special market position of the product, which is ensured by the monopolization of a niche segment. Buyers are deprived of choice and will be forced to buy a certain product or service. It can be said that this method has nothing to do with market relations, which are formed under conditions of free competition, but many companies go exactly this way.