Competitive Advantage: It’s What You Must Develop

It's really pretty simple. You'll grow revenue and increase profit by getting more customers to turn to you and return to you. More customers will turn and return if they get more value from you than they get from your competitors. So, you need to develop a superior ability to deliver value, and you can do this in one of two primary ways:

Cost Leadership - Offering products and services of comparable value but at lower prices.

Differentiation - Offering products of superior value at a price that more than offsets the higher costs that you'll likely incur.

Develop a superior ability to add value to customers and you will have developed a competitive advantage over your competitors. To the victor go the spoils.

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This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2010.

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