Sustainable Competitive Advantage: A Great Asset in Marketing

What is a Sustainable Competitive Advantage in the way of A Great Asset In Marketing?

Sustainable competitive advantage is needed for any company to thrive in the present global surrounding. The value investors extensively search for companies that are bargains. To avoid purchasing any value trap, one of the factors that are being searched for is sustainable competitive advantages. In marketing, the sustainable competitive advantage denotes the proper marketing of products to gain an extensive competitive advantage that would permit the organization to perform better in the market.

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What is a sustainable competitive advantage in marketing?

The sustainable competitive advantages in marketing could be considered as the set of assets, characteristics, or capabilities that permits the organization to meet customer needs more properly than the competition could meet. It could be considered that the non-price instruments are commonly ascribed to increased potency than the price changes, specifically since they are extensively harder to match. The rivals commonly react to any specific move by properly adjusting the complete marketing mix. These types of reactions mainly tend to be extensively intense; restricted data on the advertising recommends that all the moves plus the countermoves are often cancelled out. When the marketing strategy used in the organisation is far more improved than any of the competitors, it could be considered that the organisation has gained a sustainable competitive advantage in their marketing. The strategies are properly developed in the organisation to convey a message about the new products being launched accurately.

3 Types of Sustainable Competitive Advantages

The sustainable competitive advantages help set the business completely apart from the competition over a significantly longer period. It could help influence the consumers' decision-making and yield increased profits.

1. Differentiation

The differentiation denotes the various methods of tailoring the business strategies to create good beneficial points of the difference between the competitors and the businesses. The points of the specialization could be the improved-quality products, the strategic assets, the intellectual properties, any distinct brand image, or even the marketing strategies which are extensively unique. Customer loyalty is likely to increase when the consumers know they would have a more positive experience with the business than with the other competitors. One of the significant sustainable forms of differentiation is offering an exceptional customer experience that the business's competitors are not providing.

2. Cost leadership

Companies that can properly lower their costs and offer the required lower prices for the customer have what is considered pricing power. This is where the comparative advantage would be played, which denotes the companies with significantly lower costs of the supply chain than the competitors, increasing their overall sales margins. The overall longevity of the approach could be significantly dependent on the extensively strong cash flow.

3. Focus Advantage

The businesses that have extensively improved focus advantage denote the targeting of products, marketing, or even services for catering to the small subsection of the business's target audience. The focus strategy mainly enables the companies to isolate their significantly reliable customers within the market segment and directly service their needs through the creation of improved customer satisfaction and brand loyalty. To ensure that this strategy would work properly in the long term, the companies must significantly depend on market research to keep up with the ever-changing demands of the customers. The main emphasis in this strategy is placed on the overall working of the focus on the products of the business and providing good products to the customers.

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What is a sustainable competitive advantage example?

The most popular example of sustainable competitive advantage is the example of Apple company. Apple Corporation has been manufacturing and marketing various computers and consumer electronic products, including tablets, smartphones, and music players. The company has set its premium prices for the products and minimizes the discounts for the wholesalers to keep the prices constant across the whole market. The company mainly aims to offer consumers significantly high-quality products with distinct features. It uses the high prices to reinforce the proper perception of the added value and maintain profitability.

How to Get a Sustainable Competitive Advantage

1. Lean on market research

Market research could be considered an incredibly powerful tool for effectively identifying plus developing a sustainable competitive advantage. Just using the data plus analytics to inform the strategies could help put the business significantly ahead. As the research of previous researchers, the companies that include the data plus analytics as part of their overall strategy are four times more likely to state that the initiatives have been able to add 20% to the earnings before interest and taxes. Investing in the data plus analytics for market research could help put the company ahead of the curve and effectively reap financial rewards.

2. Focus on customer experience

No matter the overall changes in the purchasing power, the alternatives with lower cost, or even the saturated market, offering the customers an unforgettable experience could help provide a significant edge over the competitors. Several businesses cannot compete for the price or corporate assets, but they could easily compete in the customer experience. Renowned for the customer service developed improved brand loyalty and could be the increasingly stable foundation for the competitive advantage than one relied on the costs. It could help win the customers over and permanently draw them away from competition in the market.

3. Continually develop new products

The new product creation initiates through the identification of the unmet customer or even the market need. While the core needs, such as the customer experience, remain constant, the expectations regarding how the needs are being met are constantly changing and evolving. It should also be ensured that the strategy of a new product should be aligned with the vast organizational strategy. The initial iteration of the product roadmap should properly prioritize the features that would help deliver immediate value to the customers for driving the adoption. The businesses should also ensure that the product is launched with a small group of customers to validate the product-market fit.