Crucial Competitive Advantage through Product Comparisons

15. Apr 2024 | Blog | 0 comments

Crucial Competitive Advantage – Blog Post by CEDURA

 

By analyzing and evaluating various approaches, products, or strategies, a crucial competitive advantage can be identified, helping to understand our own strengths and weaknesses. Studying the best practices of others and identifying potential areas for improvement enables us to develop more effective strategies, find innovative solutions and ultimately gain an edge over our competitors.

Comparison in B2C:

Comparing products from different providers has long been a daily routine for every consumer in the B2C sector. When comparing products or services, consumers often focus on various criteria such as quality, price, features, customer service and availability. Through comparison, they can determine which product or service best meets their needs and offers the best value for it’s price. Online comparison portals, reviews from other consumers, and personal experiences play an important role in transparently conveying these values to other consumers.

Companies have the opportunity to utilize this data to gain a better understanding of their customers or their customers’ end users. In some cases, this knowledge can crystallize as a crucial competitive advantage.

Comparison in B2B:

The definition of products and the establishment of comparability is in B2B more complex.

In addition to machinery, equipment, components, and parts, there is a multitude of variations and extensive specifications that need to be not only captured but also standardized through mapping logics. These data not only enable companies to better understand their products but also to make informed decisions and provide added value to their customers, resulting in a crucial competitive advantage.

Outstanding Features:

Occasionally, the value of a single feature can determine a crucial competitive advantage, which can be significant in corresponding sales arguments. In other cases, a single feature can result in a product or service performing worse than that of the competition.

The context is crucial in this regard:

  1. Is the feature relevant to the customer?
  2. How does this feature differentiate from competitors’ offerings?
  3. What benefits does this feature offer to the customer?
  4. How does this feature influence the user experience or the performance of the product/service?
  5. What impact does this feature have on the price or costs?
  6. Does this feature meet the specific requirements or needs of the customer?
  7. Are there potential risks or drawbacks associated with this feature?
  8. How can this feature be effectively utilized in marketing and sales arguments?
  9. How might this feature affect long-term customer loyalty and satisfaction?
  10. How can this feature be further improved or optimized in future product developments?

Through the context of the feature, a negative characteristic for the right target group can suddenly become a crucial competitive advantage. (For example, a car with only two seats might be inconvenient for a family, but it could be sufficient or even desirable for singles.)

In some cases, a feature that stands out either positively or negatively may have no impact on the sales of the product or service because it’s irrelevant to the target audience. An example of this could be the origin of a product, whether it’s the city or the country where it’s manufactured. In other cases, the production location can become central to the brand and a crucial competitive advantage, as seen with various types of tea or coffee.

Enhanced Product Comparisons through Market Intelligence:

Product comparisons and their results can be further enriched within a robust Market Intelligence framework by combining them with additional information sets such as company details, financial strength, reliability, certifications, sustainability, social responsibility etc. Whether used as a battle card, sales argumentation aid or portfolio optimization strategy, the achieved market transparency helps you better position of your products compared to competitors and within your relevant market environment.

Interested in a personal exchange on the topic of market intelligence? Feel free to contact us.

Find more helpful tips and information in english on our Vimeo channel.

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