One of the challenges these days for a marketing strategy is to find a way of achieving competitive advantage over the other competing products and firm in the similar market. A competitive advantage exist when the firm is able to deliver the same benefits that exceed those of competitive products. Hence competitive advantage enable the firm to create superior value for its customers and superior for itself.
It can also be defined as an advantage over competitors gained by offering consumer greater value, either by means of lower prices or by providing benefits and services that justified higher prices.
WAYS TO ACHIEVE COMPETITIVE ADVANTAGE
Cost leadership strategy: this is one of the main way of achieving competitive advantage. The goal of cost leadership is to offer products or services at the lowest cost in the industry. The challenges of this strategy is to earn a suitable profit for the company, rather than operating at a loss and draining profitability from all market players. A good example of this is Vodacom Company in Tanzania, it is a communication company that has low cost. Differentiation strategy: this strategy is aiming at providing variety of products, services or features that competitors are not yet offering or unable to offer. Considering product characteristic such as style, handling, taste, quality ingredients, comfort, and production methods. This gives a direct advantage to the company which is able to provide a unique product or service that none of its competitors is able to offer. An example of this strategy is Samsung that has try to invest heavily in providing varieties of phone accessories that satisfy different customers.
The following article is concerned with the importance of positioning strategies to a service provider and the associated steps in selecting and supporting such a strategy through the effective management of marketing resources and the development of a competitive advantage through superior quality management. The article is structured into two major sections dealing with a) the selection and b) ...
Innovation strategy: this involves technological changes or innovative way of making company product or service better than of the competitors. A good example of this apple products, it has been a notable for been innovative with its products for example the introduction of personal music player and ipad tablets, as we have some other companies like Samsung trying to invest heavily in their research and development to achieve what apple have achieved but still apple company is still the leading brand in such products. Operational effectiveness strategy: this
involves the customer care aspect, and general internal business activities better than other market choices. It improves the characteristics of the company while lowering the time it takes to get the product on the market with a great start. A good example is Cloud services from the Safaricom company where by customers are able to store data using the software since its more convenient, cheaper and secure. Brand name recognition: a carefully conceived and executed marketing plan with a focus on the customer is a major contribution to business success. A good marketing strategy can be enough to differentiate one business from the rest, all other things being equal. For example in Kenya the best leading brand for baby diapers is pampers.