What is a Competitive Advantage?
It is the products/services that you offer that are superior to your competitors and makes customers want to buy from you instead of the competition. There have been many books written about competitive advantage, including the well known Michael Porter who defined two ways companies can gain market share and achieve competitive advantage over their rivals: cost and differentiation.
Amazon Prime, UberEATS, and Jimmy John’s all have one thing in common. Can you guess what it is? It’s the need for speed. These companies are using speed as a competitive advantage in business. That means they’re more successful because of their ability to deliver fast. This is their differentiation and you need to think what you can offer that is unique to other companies to gain market share.
For example, you could dominate your competition based on your prices or services. As long as you’re different in a memorable way – you’ll have a USP (unique selling proposition) and this will help to gain market share.
Whatever that unique specialty of yours is, you need to embrace and develop it further.
That way, you won’t need to focus on what your competition does. You’ll have more time to focus on making your business better – while making others wish they can be more like you.
How can you sustain a competitive advantage in business and gain market share?
1. Focus On The Right Strategy For Long-Term Success
What is the ONE thing you’re really good at that nobody else in your space is?
You should be able to answer this question as soon as you hear it. You might be thinking you have too many things you’re good at. But the thing is, you only need to get good at one thing to succeed. That one focus of yours is going to be your competitive advantage in business.
When you have more than one focus, it becomes a distraction. You’re not going to get to your goals as fast as you want.
You might get carried away with doing a lot of different things at the same time to get by. In reality, all you need is that one focus strategy to beat all your competitors.
This is critical. Yet many companies make this same mistake. They think it’s better to be a company that offers a lot of different services. As a result, no one knows what they specialize in. Because of that, it’s hard to see them as an expert in their industry.
Wouldn’t you rather master one thing than be mediocre at everything?
If you’re wondering what your focus strategy should be, you can ask yourself these 3 simple questions:
- What makes you different?
- What is something you can do better than anyone else?
- What’s the reason why other people go to you for help?
It’s more profitable when you’re honing your core competencies and high-income skills. You can become the go-to expert people look up to once you achieve mastery.
Your one focus strategy is all you need to set yourself up for both short and long-term success. You can be good at many things too but only after you mastered your first skill.
Dan Lok first mastered copywriting before any other skills. His focus after that was high-ticket closing, then consulting, and finally, investing in and acquiring businesses.
Had he not focused on copywriting first, he wouldn’t master the skills that followed. Copywriting led him to learn how to persuade. Then, Dan started consulting after years of successful business experience. These skills all go hand-in-hand, which is how Dan gained his success.
2. Sell To Customers Who Already Want To Buy to Gain Market Share
To get people to buy what you sell, you have to know who and where they are first. Unfortunately, everyone can’t be your customer. So, you need to understand who your best customer truly is – and what they really want.
You could feed a hungry stomach, fix something that’s broken, or make doing a task easier. Whatever it may be, you need to get yourself in front of the people who are looking for what you have.
If you’re focusing on the wrong people, you might be wasting time and effort on those who don’t need you. It’s critical to find out the best way to reach the right people so you can gain a competitive advantage in business and dominate the market.
For example, it’s better to focus on advertising childcare services to parents only. You could advertise to other people too. But, it’ll be easier to attract more parents who are already looking for your services. You’ll have to figure out where is the best place to offer childcare services. Could it be word-of-mouth, Facebook groups, or blogs? That’s for you to decide. Do your due diligence and research where most parents seek advice. The more you know, the more of a competitive advantage you will have over your competitors.
So, you have to keep in mind to narrow your search as much as possible. You can dive deep into your audience’s demographics like gender, age, and occupation.
That way, you’ll have the best chance to sell more while doing less. You won’t have to spend extra on advertising if you’ve already matched with people who want to buy from you.
According to the marketing platform, Socialbakers, there’s a reduction in costs of up to 56% for businesses using quality audience analysis to back their marketing efforts.
Imagine if you advertised on all online platforms but only received a few sales? That wouldn’t be the best strategy.
Once you’ve found the right platforms, you’ve hit the jackpot. You will only have to focus on potential buyers instead of a cold audience and you can grow your market share.
3. Build A Brand That No One Else Can Copy
Take a moment to think about Apple Inc. Can you name any other company like theirs? That might be difficult to do since they’re named the world’s most valuable brand.
Apple products are one of a kind. Others can’t replicate the quality of their products. Even if there are companies as good as Apple, no one can compete with the iPhone.
Is it because the iPhone is superior to every smartphone out there?
No. The iPhone is the leader because Apple has built a brand that others can’t copy. That’s how they dominated the market, gained market share from other mobile operations.
A brand, or personal branding, is your unique reputation. It helps differentiate you in the marketplace.
You could start building your brand in these several ways:
- Tell a story
- Create a voice
- Gain credibility
- Focus on personality
- Build a community
- Have a strong message
- Design appealing logos
- Post engaging content
- Have a distinctive online platform
- Develop a name that fits your brand
Steve Jobs, Founder of Apple, said: “A brand is not so much about rational arguments, but the way that the company resonates with people emotionally. Marketing is about values.”
For instance, you likely don’t buy Apple products to feel frugal. Instead, they might make you feel like you’re only after the best.
So, what about your brand?
The best way to approach branding for your business is to create something that’s memorable and that no one can copy. You can also create favorable associations with your products or services.
For example, Apple is well-known for its quality cutting-edge mobile technology. That’s why customers are willing to wait in long lines to get their hands on the newest iPhones.
When your company’s brand strength is that powerful, you’ll have a better chance at trust and loyalty. But to maintain that reputation, you’ll need to keep giving customers a reason to stay loyal.
If you want to keep building on your brand strength, you’ll need to keep innovating as Apple does. They’ve established dependability overtime by coming out with better and more exciting products each year.
4. Successfully Innovate to Dominate the Market
There’s a difference between innovation and successful innovation. Innovation is when you create something new. Successful innovation happens when you keep improving what you created. Once you’ve launched a new product or service, there’s always room for improvement. Not every business will get it right at their first try.
It’s likely that you’ll get customer feedback on what they like and what they don’t like. With that information, it’ll be a smart decision for you to change what’s necessary to meet customer needs.
When more customers are happy with your products, they’ll likely buy from you again. Better yet, they will recommend your business to their family and friends. That’s how word-of-mouth works.
According to The Nielsen Company, 92% of consumers around the world trust recommendations from friends and family more than advertising. As long as you keep offering solutions, you’ll have more of a competitive advantage in business.
To keep attracting new customers, you’ll need to offer good ideas that can make people’s lives better. You can achieve this by adapting knowledge to new situations. And then, put in more time and practice in innovating.
Your innovations will only get better with time since you’ll overcome challenges. That’s how your business gains confidence in selling the best, quality products.
You can also encourage your team to come up with ideas that evolve your business. This will ensure that company’s success when you’re looking forward to the next level.
If you’ve been following Dan Lok for a while now, you might have noticed how often Dan refines his company. As soon as he sees a better way of doing things, he pivots fast. That’s because he wants to provide the best quality service and products possible. To do that, he has to keep coming up with new ideas to give you more value. When you can trust his brand, you will trust what he has to offer next.
5. Make Sure You Have Superior Customer Service to Give You a Competitive Advantage
Don’t settle for mediocre customer service – go ahead and shoot for the moon. The results will be worth it in the long-run. Your customer service will be something people talk about if it’s that unforgettable. It’s going to give you a competitive advantage in business when customers feel that you care for them.
All it takes is for you to listen to their problems and go above and beyond with delivering the solutions. They will never expect to receive more than what they asked for. When that happens, it’s hard for anyone to buy from you only once. The experience you gave them should be something they want more of.
As long as you stay true to your promises, your customer satisfaction increases. If not, you can lose a customer with one bad impression.
Football Coach Vince Lombardi said, “It takes months to find a customer, seconds to lose one.”
Your customer service might even be the main reason people buy from you. Your products could be original but your service could be superior.Great customer service can overcome poor marketing. Click To Tweet
If your customer service is up to par, there will be no reason for your customers to turn to your competitors. In fact, people are willing to look past the prices if you can treat them better.
Wouldn’t you rather pay extra to feel good after every experience? Or, would you rather risk paying less and deal with a business who doesn’t get back to you?
When you have a loyal customer base, you can expect a recurring revenue and gain market share away from your competitors.
6. Spread Value Like Wildfire to Gain Market Share
Like customer service, the value you put out needs to be superior too. Giving value is one of the most effective ways to gain a competitive advantage in business. Everyone loves free stuff, right? When you give more than you ask, your success will follow. When you’re asking too much for the sale, people likely won’t buy from you.
So, you have to keep in mind that you need to gain people’s trust first. Then, nurture and build a strong relationship with them before you sell anything.
People don’t like to be sold to, but they do like to buy. That’s how you should approach all your potential customers. You have to make them feel good about buying first so that they can justify that it was a good decision to buy.
Instead of selling, share your success and secrets. If people like what they see from you, then they will want more from you. That’s when you can offer what you have to them. Selling will come easy afterward.
Also, there’s no need to keep your knowledge all to yourself. When you showcase your expertise, more opportunities will open up to you. This is how you will be able to position yourself as a leader in your industry.
Gain a Winning Competitive Advantage in Business
Having a competitive advantage in business is the greatest feeling ever.
You can attract new customers without changing your prices, and you don’t have to spend a fortune on advertising to get more leads. You will even be that one go-to company for people who need what you have.
If you follow these key factors that we went over, your business can get ahead faster. When there’s less to compete with, you can focus on innovating and being the best at what you do.
Instead of worrying about your competition, you’ll be producing value for your audience. You’ll be so confident in your customer service and will build a long list of loyal customers.
Once you set your business apart in a memorable way, it’ll be hard for anyone to resist you. They won’t even think about switching to your competitors because they know you’re their best option.
Like Apple Inc, you can also have products or services people can’t wait to buy. When the market trusts your brand, anything you create will become a new revenue stream.
This is something Dragon 100™ can teach you to do. With this advisory board as your guide, you’ll be sure to stay on the right track for success. Dragon 100™ is for A-level entrepreneurs who are looking to make an extra 6 or 7 figures. Only 100 members are in it, and you could be the next to join.
If you want Dan Lok to help you gain market share and beat your competitors with a fast-forward button, click here to apply today.