Marketing Strategy: Sustainable
The goal of creating a sustainable
competitive advantage is to establish an edge over the competition
that cannot be easily mimicked or copied. Understanding the
competition will be essential to this phase, and will likely involve
a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
While there are different strategies to
developing a competitive advantage, one of the best ways is to excel
in the four areas of the marketing mix. A business can focus on
providing products with high value, reducing costs by more
efficiently managing the supply chain and human resources, reducing
inventory costs by using the Just In Time (JIT) inventory method, or
providing excellent customer service by building positive
relationships with customers for long-term business.
As an example, if a company can produce
a product for less than competitors, then pricing below competition
while communicating equal value to consumers will give the company a
sustainable competitive advantage over the competition that cannot be
easily copied. Another example may be a company who matches the
competition in product, price, and place, but excels in customer
service in order to create consumer loyalty and repeat business.
The idea behind a sustainable competitive advantage is that it
cannot be easily mimicked by the competition. No one can be the best at
everything, and even if a competitor excels at product, price, and
place, any small business can still compete with great customer service.
Article: Customer Relationship