Market advantage
| Market advantage |
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| See also |
Market advantage is competitive advantage on local and global markets with additional ability to win with the competition, Sources of market advantage can be found in the activities that lead to the creation of value for which the ultimate beneficiary is the customer. In the literature we can find many interpretations of the sources of market advantage:
- Strategic resources (assets)
- Architecture (the system of relations with suppliers and internal organizational structure)
- Innovation (the ability to enact new technical, organizational and economic solutions)
- Reputation
- Time (shortening research, development and implementation processes in the company)
- Possibility of geographical dispersion in various fields of activity
- Quality (value of product determined by the customer - user)
Current scope of market advantage can be determined by:
- identification of competitors and operationalization of the areas in which company compete with them
- pricing of company competitiveness,
- determine the relative rating of company against competitors
Market advantage is achieved by a company whose employees have the relevant expertise. The advantage may be obtained by shortening product life cycles, accelerate technology development, improving the coordination of marketing, production, development and increasing the efficiency and speed of development.
How to achieve advantage on the market
A company can achieve a market advantage by differentiating its products or services from those of its competitors. This can be done through various means such as:
- Innovation: Developing new and unique products or services that meet the needs of customers in new ways.
- Branding: Building a strong and recognizable brand that sets the company apart in the minds of customers.
- Quality: Offering higher-quality products or services than competitors.
- Price: Setting prices that are competitive or lower than those of competitors.
- Distribution: Having a wider distribution network than competitors or reaching customers in a unique way.
- Marketing: Creating a compelling marketing message that resonates with customers and differentiates the company from its competitors.
- Networking: Building a network of strategic partners, suppliers and customers which can give company access to new markets, technologies and resources.
- Intellectual property: Obtaining patents, trademarks and copyrights that protect the company's unique products, processes and branding.
- Cost advantage: Having lower costs than competitors, which allows the company to offer products or services at a lower price or to invest more in marketing and growth initiatives.
- Customer service: Having a strong customer service that sets your company apart from the competition.
It's important to note that achieving a market advantage takes time and may require a combination of these strategies.
References
- Yeniyurt, S., Cavusgil, S. T., & Hult, G. T. M. (2005). A global market advantage framework: The role of global market knowledge competencies. International Business Review, 14(1), 1-19.
