Competitve Advantage

Competitive advantage is gained by exploiting the unique blend of activities, assets, resources market conditions, product or service benefits whereby a firm gains an edge over its rivals in attracting customers and defending against competitive forces. Having access to specific location, skilled workforce, lower costs, better quality services, or unique technologies can help win a competitive advantage over your competitors.


                           Importance of competitive advantage for any business.

Cost advantage: The business competes on price. This requires a low cost structure, with minimum overheads. It as well requires a focus on delivering economies of scale.

Value advantage: There is a provision of the business to have a differentiated offering that is perceived to be of superior value.

Focus advantage – This is an approach which requires the business to focus on a specific market niche, with a tailored offering designed specifically for that segment of the market.


How Competitive Advantage can be developed into your business (a nursery day care centre)

Focus strategy:  Suggesting a focus approach form of differentiation were an individual/manager can focus on a specific market niche from his or her market segment to give a good offer to the customers by creating a good competitive advantage. For example, a service sector business (a nursery day care centre) where Such differential focus in his/her market segment can be families who may not be willing to bring their kids over to the child care and nursery centre due to been late from work. He/she can provide a transport system where she can make provision for pickup and delivery of the kids.

Differentiation Strategy: This seeks to develop a competitive advantage over its competitors where there is a difference to what the competition is doing. This can come as a result where there is a high quality of service rendered or a sophisticated technological based system in the child care and nursery centre so as customer are convinced on what the service offer in other for them to be able to pay for such service without any form of complains. Such high payment of service can be look at when given a pricing strategy to be premium pricing and price skimming.

Cost concentration strategy: maintaining a cost effective ways so as you do not spend much in other to be able to meet up to your competitors. Manager has to be a able to reduce the cost of his/her segments in other to be able to on the same cost level with her competitors.

Cost leadership: it deliver the lowest cost of operation within a mass market which offers a consistent level of quality but this does not mean that you aspire to give your customers the cheapest service in the market. Such manager can offer a very good quality for child and nursery day care for a good price.