How Do Small Businesses Gain a Competitive Edge?
In the modern world of business, gaining a competitive edge in one or several aspects of a firm's operations is vital for long-term success. In recent years, there has been a range of external factors that have posed challenges for businesses and their continued profitability. In the last two years, the Covid-19 pandemic caused many businesses to suffer from lower levels of revenue. This was a direct result of the restrictions on movement and social gatherings that were put in place by many countries in an attempt to slow the spread of the virus. The retail sector and hospitality sector were especially affected by such measures. Whilst online businesses in this sector often flourished during this period, physical premises were hugely affected and, in some cases, this caused businesses to cease trading. Today, inflation and an emerging cost of living crisis are causing new challenges for businesses. This article seeks to identify three key ways in which a business can gain a competitive edge and successfully navigate through an increasingly uncertain and challenging economic climate.
Exceptional Leaders
Businesses recognize that by hiring or cultivating exceptional leaders they can foster a culture of innovation and a strong working ethic across their organization. The best leaders can inspire the wider workforce to perform at a higher and more effective level, especially when these leaders demonstrate the same qualities. Exceptional leaders need to subscribe to a philosophy of lifelong learning so that their skills stay relevant and highly developed. Businesses can achieve this goal by offering new and existing leaders a wide range of personal development opportunities to improve their skills and knowledge base. One example is sourcing technical leadership training programs for their leaders that build on core leadership skills, such as improving efficiency, communicating effectively, and achieving results through others. Put simply, a highly trained leader can use their skills to drive efficiency gains across a whole business.
Utilize Social Media Channels
Any company that sells products or services will rely on having a strong customer base to generate high levels of revenue and, therefore, profitability. Today, the power of social media is increasingly being used by firms to gain a competitive edge in their sales and marketing activities. Social media platforms, such as Instagram and Facebook, can attract billions of daily users. By constructing promotional and marketing campaigns on these platforms that appeal to the intended target market, a business can effectively reach new and existing customers. Businesses excel in these platforms when they make short but memorable promotional videos that link back to their company website, ideally to the product page of the item or range that they are promoting.
Differentiated Products
All businesses should recognize the value of offering a differentiated product or service to their customers or target markets. A differentiated product offers something else to that of a competitor's products and, as such, a distinction can be made between them on values other than price. This is such an important concept in business. Put simply, if two products or services have identical features or benefits, then the only way that companies can compete is on price. This often leads to “price wars” where companies cut their prices in an attempt to draw customers away from competitor brands. Cutting prices leads to reduced profit margins, so it is more viable to offer the customer a product or service that is unique in some respect and appeals to the target market.
Exceptional Leaders
Businesses recognize that by hiring or cultivating exceptional leaders they can foster a culture of innovation and a strong working ethic across their organization. The best leaders can inspire the wider workforce to perform at a higher and more effective level, especially when these leaders demonstrate the same qualities. Exceptional leaders need to subscribe to a philosophy of lifelong learning so that their skills stay relevant and highly developed. Businesses can achieve this goal by offering new and existing leaders a wide range of personal development opportunities to improve their skills and knowledge base. One example is sourcing technical leadership training programs for their leaders that build on core leadership skills, such as improving efficiency, communicating effectively, and achieving results through others. Put simply, a highly trained leader can use their skills to drive efficiency gains across a whole business.
Utilize Social Media Channels
Any company that sells products or services will rely on having a strong customer base to generate high levels of revenue and, therefore, profitability. Today, the power of social media is increasingly being used by firms to gain a competitive edge in their sales and marketing activities. Social media platforms, such as Instagram and Facebook, can attract billions of daily users. By constructing promotional and marketing campaigns on these platforms that appeal to the intended target market, a business can effectively reach new and existing customers. Businesses excel in these platforms when they make short but memorable promotional videos that link back to their company website, ideally to the product page of the item or range that they are promoting.
Differentiated Products
All businesses should recognize the value of offering a differentiated product or service to their customers or target markets. A differentiated product offers something else to that of a competitor's products and, as such, a distinction can be made between them on values other than price. This is such an important concept in business. Put simply, if two products or services have identical features or benefits, then the only way that companies can compete is on price. This often leads to “price wars” where companies cut their prices in an attempt to draw customers away from competitor brands. Cutting prices leads to reduced profit margins, so it is more viable to offer the customer a product or service that is unique in some respect and appeals to the target market.
