8 Ways to Gain Competitive Advantage

Establish high switching costs

A company can gain advantage if it can ______, making it economically infeasible for customers to buy from competitors.

Differentiate products or services

A company can gain advantage if it can attract customers by convincing them its product differs from the competitor's.

Reduce costs

A company can gain advantage if it can sell more units at a lower price while providing quality and maintaining or increasing its profit margin.

Raise barriers to market entrants

A company can gain advantage if it deters potential entrants into the market, enjoying less competition and more market potential.

Create new products or services

A company can gain advantage if it has a unique product or service.

Establish alliances

Companies from different industries can help one another gain advantages by offering combined packages or goods or services at special prices.

Lock in suppliers or buyers

Making it impractical for suppliers or buyers to deal with competitors.

Enhance products or services

Making one's own product or service better than other's.