A competitive edge is what your business does that differentiates it
from other businesses. It sets you apart from the competition. It is
something that you want to communicate and promote to your customers.
The success of your competitive edge relies on a simple formula.
Benefits you offer = Customers' needs
Remember: A competitive edge is only temporary. When
someone else sees something working they will attempt to copy.
Think for a moment - what will make your product stand out from
the competition?
| Case
study |
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Tina established an inner city café 18 months
ago. The tiny café seats 14 and is situated in
a busy trading strip for shopping enthusiasts.
Tina knows the strip well, having worked there in various
retail boutiques over the past 7 years. It attracts a
large volume of visitors and offers ample public car parking
due to nearby supermarkets, a gymnasium and a university.
Tina now has a loyal clientele group and revenue is increasing.
But it has not been all plain sailing.
'Although this is a busy strip, we are nestled amongst
a dozen other cafés who all basically offer the
same thing' acknowledges Tina. 'We offered gourmet sandwiches,
latte and éclairs – but so did everyone else.'
'At first we were servicing all types of customers but
they seemed to be mainly one off purchasers. So I started
to look at focusing on two particular customer groups
– obviously the main types of customers that would
spend more at my café'.
Tina decided to target busy young local workers and university
students in their twenties. These customers were 'on the
go' and largely health conscious, so Tina needed to target
her products accordingly. In addition to coffee and gourmet
sandwiches, she started to offer herbal teas, freshly
squeezed fruit juices and vegetarian meals.
The change worked. Stressed out university students were
sipping on peppermint teas during lecture breaks and office
workers were drinking juices with their vegan meals and
soy inspired dishes. Tina had created her competitive
edge.
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Tina's competitive edge was her specialised range of products. What
is yours? Check with the 'Business advisor' for some ideas.
Work through the activity 'Identifying a niche' to develop your own
competitive edge.