A slightly different approach to gaining market advantage is the concentration strategy. It is based on focusing activities on only a narrow segment of the market. This allows for a high degree of specialization and philippines phone directory search the possibility of creating a kind of "small monopoly" in this area. By concentrating fully on this single segment, the company immediately picks up on new trends and innovations that are introduced to the market. In this way, it maintains its leading position and enjoys a significant advantage over its competitors, who are spread across many segments and cannot react as quickly to changes.
The concentration strategy is often called a niche strategy, because the goal is to find a part of the market – the so-called niche – that is not yet developed or where potential competition is weak. It must also have growth potential and be a size appropriate for our company. This type of strategy involves a low level of risk and works well for small and medium-sized companies.
J. Kay's theory
According to J. Kay, companies that achieve competitive success are characterized by three key elements:
Architecture: is the ability to establish and maintain contacts within and outside the company. Architecture can be divided into two parts: internal and external. Internal refers to the way employees communicate and collaborate, while external refers to maintaining relationships with customers, suppliers, and other companies. Thanks to architecture, a company gains organizational awareness, which allows it to flexibly adapt to internal and external changes.
Innovation plays a key role in achieving long-term competitive advantage. Successful innovation contributes to the rapid growth of an organization, and a company can use various strategies to support it. There are three types of innovation: organizational, product, and process. Organizational innovations refer to the implementation of new strategies in a company, product innovations are improvements to already manufactured products and the expansion of the product range, while process innovations refer to the introduction of new manufacturing methods.
Reputation is a very important element for a company. It serves to convey information to customers about the company, its products and services through advertising or the company's brands. A good reputation provides long-lasting positive feedback about a company and its offerings, influences a positive corporate image and guarantees a number of benefits.
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How to build your own company's competitive advantage?
To make your business stand out from the competition, it is worth focusing on creating positive associations with your company. This can be achieved by maintaining an interesting page on social media and publishing valuable content on blogs related to the online store.
In this age of rapid information exchange, it is important to respond quickly to potential customers' questions and problems. Efforts should be made to respond quickly to any conflicting issues. In addition, attention should be paid to after-sales support and ensuring customer satisfaction after the transaction. Many companies gain a competitive advantage by offering additional warranties on purchased equipment, creating loyalty programs, and offering regular promotions to repeat customers.