What is the competitive advantage?
We have repeatedly written about competitive advantage on our blog. We also emphasized the importance of conducting business negotiations and managing relationships in the way supporting the competitive advantage.
But what is the competitive advantage? And what are the most effective methods of achieving it?
What is a competitive advantage?
The competitive advantage is when a company achieves a superior position on the market. In practice it is a situation where the company’s products or services are more likely to be chosen by potential customers than those offered by other suppliers.
Competitive advantage can be achieved through cost effectiveness, the level of product innovation or providing clients with the most positive experiences and service.
Thanks to competitive advantage a company can generate higher margins and achieve better financial results.
Competitive advantage thanks to suppliers
Suppliers can be a source of market competitive advantage. In many cases well-prepared and effectively implemented purchasing strategy and relationship management allows company to increase effectiveness and offer their product or service at the best value for money level.
However, it is not the only benefit that can be achieved through good management of the supply chain area. Cooperation with innovative partners enables the improvement of innovation of own products or services and building a quality advantage over direct competitors.
It is worth remembering that due to the market dynamics it is virtually impossible to develop a permanent competitive advantage. That is why it is extremely important to constantly monitor market trends and implement innovative solutions at the every stage of the supply chain.