How Businesses Build Competitive Strategies

Building a competitive strategy is about how companies outperform their competitors in generating profits by satisfying the same consumer needs and wants.

There are many businesses around us. Some target the same market. They compete directly in satisfying consumer needs and wants. And, their products replace each other. So, when consumers do not like the product of a company, they will switch to a competitor’s product.

Now, let’s say, you are running a business.

Being successful in the market requires an effective competitive strategy to win the competition. When successful, your company generates above-average profitability by gaining a competitive advantage.

However, due to dynamic competition and market demand, competitive advantage may last only temporary. Competitors may develop superior competitive strategies and eventually outperform your company.

For this reason, your company should adapt the strategy. Thus, it remains relevant and effective in dealing with the changing business environment. And, if your company is able to maintain a superior position over time, that is what we call sustainable competitive advantage.

How does your business successfully compete and gain a competitive advantage? Michael Porter provides a basic framework, known as generic strategy. It tells us how companies compete, in what dimensions.

Then, your …

What are the Advantages and Disadvantages of Asset-Led Marketing

Asset-led marketing has both advantages and disadvantages. Although more focus on internal strengths to satisfy consumer needs and wants is relatively inexpensive, core competencies are not always relevant to market demands. Dynamic market environment. Tastes and consumers can change from time to time. Likewise, competition is also dynamic. Such factors can make the competitive advantage built through past core competencies no longer sustainable.

Before discussing the advantages and disadvantages of asset-led marketing, let’s briefly review what it is?

What is asset-led marketing

Asset-led marketing is a marketing approach in which your company focuses on internal strengths to meet customer needs. Internal strength comes from the resources and capabilities your company has. Both form core competencies if they are valuable for creating value, rare, expensive to imitate and non-substitutable.

Then, your company utilizes these core competencies to produce products. For example, your company leverages a strong reputation and brand image to develop and market new products around existing products.

This approach does not completely ignore consumer tastes or preferences. But, your company is more based on internal strength to produce innovative products. Your company bases its strategy on existing strengths and assets instead of spending big bucks to properly identify consumer …