How To Increase A Business’s Competitive Advantage
In modern times, the survival of a business doesn’t rely on how talented or how many customers you have got. It directly relies on how well you can cope with the external competition. In brief how long a business survives depends on how much of a competitive advantage it has. It is very important especially to small or medium scale businesses that they continuously assess their competitiveness and measure their ability to compete with the rest of the industry. Let us look at some factors that such businesses should keep in mind in order to gain a competitive advantage.
Situational AnalysisIt is important to first and foremost analyze where in the industry your business stands. How your business is perceived by the stakeholders. One can undertake situational analysis measures such as the PESTEEL analysis, SWOT analysis or PORTERS Five Force Theory to analyze the present business situation. Once we know where our business stands it is easy to take the necessary steps and measures to increase the competitiveness of your business.
Reduce CostAfter analyzing the business’s situation the next step is to find out how to correct the situation to your advantage. There are many steps that you can use. The very basic trick is to reduce overhead and running costs. So you have to check for ways on how to reduce your cost. Let say for instance if you are maintaining company records and all data on a company maintained server but you will need expansion to hold the large volumes of data being processed by your company, why not opt for an ERP company in Singapore to deal with all your data handling. It will immensely reduce software and hardware costs, also running and maintaining such a huge system falls off of your shoulders. You can now focus on your business solely.
Expand your Clientele Once you get a cost advantage to your business it is important that you undercut on your profits at least for some time. This will help you gain a loyal clientele to your business. Building up a good relationship with your customers is very important because they will ultimately decide the fate of your business. You can use a cloud ERP solution to handle all your customer database and make it remotely accessible. So that you can always be available to customer demand despite geographical placement.
Ethical and CSRPeople value ethics before business. So if it is not the morale in your business then there is no doubt you will be out of business very soon. So always be ethical in all your business dealings. Try to always help preserve the environment and also make sure that no human big or small and no other living being was hurt during your business process. People now tend to be driven towards businesses who take up their CSR very seriously.