| The most common routes to sustainable competitive | | | | sustainable competitive advantage. It is very difficult |
| advantage involve one or more of the following basic | | | | to be all things to all people; however, it is reasonable |
| strategies: differentiation, low cost, niche, preemptive | | | | to assume that you can cater to the needs to a |
| move, and synergy. | | | | specific market segment. |
| Differentiation - your product is distinguished from | | | | Preemptive Move Strategy - involves gaining a |
| that of your competitors by giving customers more | | | | strategic advantage by being the first to enter the |
| value and greater perceived benefits than they could | | | | market with a new product or service, a new use |
| obtain elsewhere. You have to clearly state what | | | | for an existing product, a new transaction process, or |
| your product has, or can do, as compared to your | | | | other innovation. If implemented successfully, this |
| competitor's product - why your product is different | | | | strategy can create barriers to entry for others that |
| and therefore better! | | | | attempt to follow you into the marketplace. |
| Low Cost Strategy - should not be confused with | | | | Synergy (or Joint Venture) - Companies, or |
| the idea of being inexpensive, or dare I say it, | | | | individuals, that combine assets and skills to achieve a |
| "cheap". It's about value. In today's tough economic | | | | strategic advantage. Examples of the synergy |
| times, customers demand more value for their | | | | strategy could include: sharing customer databases, |
| money, causing marketers to examine creative ways | | | | expanding your product mix, increased market |
| to deliver additional value to their customers. While | | | | credibility, cross-selling, reduced operating costs, and |
| value doesn't necessarily mean that the customer will | | | | so on. |
| pay less for your product, it does generally imply that | | | | In order to sustain a competitive advantage, it is |
| they will receive more for their money. | | | | imperative that you position your product whereby it |
| Niche - a strategy that concentrates, or focuses, on | | | | undoubtedly emphasizes your products' value. |
| a specific market segment. This focus can be | | | | Remember that value is measured through the eyes |
| combined with other strategic marketing techniques, | | | | of the customer. |
| such as differentiation or low cost, to achieve | | | | |