What is a competitive advantage?

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Competitive advantage is a factor that makes a brand's product more attractive to the customer than others available on the market. This is often very subjective, as each consumer pays attention to different strengths and adapts to a different type of product. However, it is possible to observe some general trends that characterize almost all markets. If we adapt to them, we can significantly increase the chances that buyers will choose our product or service.

Types of competitive advantage

To achieve a competitive advantage, one must first philippine cp number increase the degree of operational independence with respect to competitors. This means expanding the freedom of operation of tools so that the company can increase its effectiveness in the market. We can distinguish three basic types of competitive advantage:

qualitative advantage - Marketing activities and tools, such as product, packaging, distribution, services, and the terms under which they are offered, are susceptible to qualitative change. By equipping these tools with superior or unique quality compared to competitors and adapting them to buyer preferences, a company can achieve a qualitative advantage that enables it to exercise greater bargaining power with the buyer.



Price advantage - The basis for achieving competitive advantage is the use of marketing tools and activities that are directly related to the material needs of buyers. To achieve this, a company must set prices at a level lower than those of its competitors and use other tools, such as promotion, at a level higher than those practiced by its competitors.