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As a result of that, the prices for the products are low compared to the competitors due to the relatively low production costs. This means that they can sell the same products as competitors for a lower price. For example, a non-disclosure agreement for the employees to not disclose the franchisee recipe. Put yourself in their shoes and try to look at this from their perspective. This is one of the highest forms of competitive advantage and can bring obviously a very big profit to the company. Relevant: Read about some of the top competitors of Amazon here 2. As such, it enjoys a strong competitive advantage over the competitors. Trade secrets: these are secrets that only your company knows and the competitors have no idea of them. Did you learn some new things about competitive advantages? It basically targets specific segments of the market that are not yet tapped by other larger firms. With this offering, Amazon did two things. Brand: one of the biggest competitive advantage strategies out there can be said to be the brand. Anyhow, you have to think deeply about why your offering is special and why would the customers choose your product over the others on the market. Deep knowledge of the competition: you have to know who is your present competition and who is an upcoming competition in the future. Also, potential customers that would start buying if you offered them a good competitive advantage. Also, offering a variety of products can be a competitive advantage by itself. They are not protected by law, but they are kept a secret. Effective brand strategies lead to customer loyalty which means that they are ready to pay more than needed to purchase the branded product. That is why many people still have a profile because they are afraid of missing out. That is how you can define your points of differentiation and start creating a successful competitive advantage strategy. In order to connect the theoretical knowledge with a real understanding of what competitive advantage is and how powerful it can be for a company, I will dig into some examples next.

Venus competitive point advantage is a certain attribute of a company venus competitive point gives the company a favorable position venus competitive point the market in comparison to the competitors. Secondly, in this way more purchases are encouraged since the shipping time is actually one of the main reasons why people decide not to purchase something online.

The product that offers top speed is their Amazon Prime membership which guarantees people two-day shipping on all the products that are eligible for the Prime membership.

What they offer to their customers is a high efficiency, accuracy, venus competitive point the biggest perk of all- speed. Reputation and Quality : if the read more, partners, the general public has a high opinion of your products and perceives them as high-quality products than that is also this web page competitive advantage Customer satisfaction: if your customers are all the time satisfied and pleased by how they are treated by your company then they will always prefer you over your competitors.

This favorable position eventually results in more customers, and with that higher profits. Variety of products: if a certain company offers a wide variety of products then they can achieve efficiencies like reduced costs.

This will make them more inclined to continue paying the premium membership. Intellectual property: these are the trademarks, patents, industrial designs that your company has and are protected by law and that stops other companies from using them giving you the ultimate competitive advantage Business connection: sometimes the connections and collaborations that a company has make that venus competitive point unique compared to the competition and that can be a competitive advantage too.

Facebook Facebook is the largest and most used social media platform in the world. Market segmentation: is basically a combination or a cross between these two previous strategies. That is how paying attention to the customers and the design to affect the user experience and construct loyal relationships is playing out for Apple.

To create this type of a competitive advantage you need: Deep knowledge of your target market: you need to know how your target customers think of, feel about, and need from your brand. Next, check venus competitive point these other posts:.

Additionally, the constant innovations, personalized content , advertisement model , and many other smaller things are just adding new dimensions to their competitive advantage strategy. Then, analyze their products, prices, strategies, etc. They created a brand that connects intimately with the customers forming emotional attachment so customers want to have it no matter the cost. As a company, it experiences very strong loyalty from its customers and the way they created that can be considered of their competitive advantages. Read next: What is Green marketing and how you can do it Types of Competitive Advantage Different kinds of literature give a different number of types of competitive advantage. Apple Apple is also one of the richest companies in the world and one of the most famous brands. Firstly, they condition the customers in a way in which even if they intend to try the Prime membership only once after receiving their products in two days they will not be willing to wait again five to seven days for standard shipping. Competitive Advantage Examples All of this so far has been theoretical with few small examples here and there. This gives them power over their competitors and imposes some barriers to entry for smaller companies. From the weights of the products to the boxes they come in. It refers to the ability of a business to create a good or service, that is very difficult to replicate and fulfills needs. One of the strongest competitive advantages is the network effect which I explained earlier. That is exactly the competitive advantage that Amazon has and that made the company one of the richest ones in the world. Besides these ones, there are a lot of different strategies that a company can use to create a competitive advantage. One of the most famous differentiations of competitive advantage is the one done by Michael Porter. Know-how: some special knowledge or abilities of the people that work with one company can also be a great competitive advantage for that company Operational processes: effective operational processes that a certain company has can make it more effective and in the end produce more cost-effective products compared to the competitors Risk Management: a competitive advantage can be also the ability to do great risk management which means identifying and eliminating the potential risks better than the competitors. Businesses can capitalize big time on their brand. Unique Selling Propositions: these are usually the base for competitive advantage as I previously mentioned. Money: money always means power. Another big competitive advantage is the deep pockets of the company which I also explained previously. Everything about the apple products is a unique experience, a sensory pleasure. Your strategy can consist of one competitive advantage, or it can consist of multiple mixed strategies. Barriers to entry: there are many barriers to entry that are imposed to the entering businesses by the old businesses like access to suppliers, trademarks and patents, etc. Network effect: this is a strategy that when more people use a certain product it becomes more valuable to the people. Differentiation: is an extremely effective strategy when executed the right way, even though it is a less tangible and easily defined one. They should be clearly defined and understandable to customers. They have an enormous amount of shipments per day which makes them one of the top valuable companies in the world. According to him, there are three types of competitive advantage strategies and those are: Cost leadership : this means that a firm creates competitive advantage by creating economies of scale with very efficient operations, and producing large quantities of product.