The competitiveness of the enterprise is a fundamental feature of the modern market economy. And companies should strive to make business decisions that will give them a long-term competitive advantage. Nowadays, the advantage is gained by those who are recognizable and more visible in the media, especially on the Internet. Customers buy not only the product that meets their needs, but also the brand and the promise behind it.
Commonly, competition is understood as rivalry between individuals or groups striving to achieve the same goal. The competitiveness of an enterprise is a determinant of which economic entity is the best and whose activities are moving in the direction desired by customers. It is the ability to survive on the market and the ability to oppose companies offering a similar offer.
Competitiveness of the enterprise and sources of competitive advantage
An entrepreneur, trying to make his offer stand out, must do something that seems different and better in the eyes of potential customers. Understanding the sources of competitive advantage that will ensure the creation of specific values is a key element of the company's operation. And knowing what causes the success of some companies and what causes the failure of others should be a basic need of every organization.
The strength of your company is not only the offer proposed to clients and shaping your position on the market. It is primarily the owned resources. Human, financial, physical and skills, abilities, infrastructure and imagination, as well as personal strength, motivation, connections and determination. Therefore, it is worth looking for sources of competitive advantage outside the traditional area of its activity.
The foundation of competitive advantage is knowledge, flexibility and innovation. They reflect the company's potential. Competitive advantage is not given once and for all. It is conditioned both by the actions of the competition and the changes taking place in the structure of the industry and behaviors consumers.
Competitiveness is built on differences - this is, among others, non-price competition. To be successful, you need to be sure that the difference on which you are building your competitive advantage is real and verifiable on the one hand. On the other hand, it is also important and valuable for potential customers. In addition, the difference that builds the value of your brand should be properly communicated, emphasized and propagated in various types of marketing materials.
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How to effectively build and maintain the competitiveness of the enterprise?
The basis for the functioning of any organization is well-structured and properly deployed development strategy. Its key element is the pursuit of a long-term competitive advantage. Companies are constantly looking for ways and tools to help them raise their competitive position. Through systematic and reliable communication, public trust is built, which directly translates into the company's position in relation to the competition.
Building and maintaining a competitive advantage depends on both internal and external factors. The methods of building and maintaining a long-term competitive advantage include, among others:
- offering original and innovative solutions that constitute a significant value for customers,
- focusing on meeting the needs of a narrow market niche or targeting the hitherto unused and forgotten areas,
- care for building lasting relationships with customers through reliable care and authentic communication,
- developing a culture of entrepreneurship, based on building unique key abilities,
- using unconventional and original forms of communication and marketing.
Taking into account the progressive phenomenon of shortening the life cycle of products, as well as the dynamically changing consumer needs that need to be met, companies must build their position on the market, taking into account all available resources.
Competitiveness of the enterprise and the company's image
One of the sources of building an advantage is the appropriate cooperation of the company with the external and internal environment and shaping the company's image in the minds of the audience. The communicative building of a competitive advantage can take place both visually and verbally.
What distinguishes a given company on the market is primarily its identity, i.e. history, philosophy, strategy, behavior of employees and owners, quality, culture, management style and activities for the local community. These are often irreparable values, which is why it is worth building the credibility of the brand and its image around them.
Knowledge about competition and the company's competitiveness
The more you know about your competition, the better you can be prepared to fight to gain an edge in the marketplace. Knowledge is power. Determine which companies you are competing with and carefully analyze them. How? In terms of: strengths and weaknesses, size of activities public relations, market share, similarities and differences, selected business model and communication strategy with the surroundings.
There are many ways to learn about your competition. First of all, the Google search engine comes in handy, as it will precisely indicate all the information you need. An excellent source of knowledge about the competition are also the opinions of their existing customers. A smart way to gain knowledge is also participation in fairs, during which you can talk to representatives of competing companies and collect various information and promotional materials. Also, remember to use competitors' offers yourself to precisely assess their advantages and disadvantages.
All the information collected will help your company to do even better and take advantage of all the weaknesses of the competition. That is why it is worth becoming a detective and spending time analyzing the competition every day. Let your competitors' best methods of operation inspire you to create an ideal model that will set a benchmark for your business.