Competitive advantage is where a business’s goods or services are superior to or outperform the competition’s. Companies with a competitive advantage may have it because of:
These qualities don’t guarantee a competitive advantage, but they can help businesses get an edge over the competition.
Think of McDonald’s dollar menu. Everyone can make a burger. Not everyone can make a burger, sell it for a dollar, and have it ready for you in less than 5 minutes. That’s what gives McDonald’s its competitive advantage over the other fast-food restaurants out there.
Competitive advantage increases a business’s profits and brand loyalty. If you have customers with brand loyalty, then you can use excess funds to reinvest in the business. For creative companies, having a competitive advantage means that you can try out that new project.
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Having a competitive advantage is the sweet spot for businesses. It’s where all your hard work pays off, and you can finally take a breath. It’s also a chance for you to flex your creative muscles. Or batten down the hatches for the slow season.
But how do you achieve a competitive advantage? Like with most things, there’s no magic bullet. Here are some tips for developing a competitive advantage:
These are just a few tips for any limited liability company or corporation.
Competitive advantage is where a business consistently outperforms the competition. What drives a competitive advantage is usually unbeatable price, customer service, or quality.
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Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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