Competitiveness

Competitiveness can be defined as:

The ability of a business to deliver better value to customers than competitors

A key part of all business activity – in which marketing plays a key role – is the search for sustainable competitive advantage. This phrase means exactly “what is says on the tin”.

Competitive advantage means:

• The ability of a business to add more value for its customers than its rivals and attain a position of relative advantage
• A situation where a business has an advantage over its competitors by being able to offer better value, quality and/or service

The key word in the bullets above is “value”. Value is what a customer is prepared to money for. A business that offers better value than competitors will enjoy an advantage.

A good way to think about value is to consider a purchase that you have made which, looking back, you consider to be good value. What was it about that purchase that you feel happy about?

• The price you paid?
• The features or benefits that you obtained from the product
• The enjoyment or satisfaction you have gained from owning or experiencing the product?
• The time you have saved?

A customer’s perception of value is very personal. It is usually based on several intangible factors as well as tangible factors. The hard bit for a “competitive” business is to work out what you as a customer value – and then deliver that to you!