When starting an online business, just like any business, in order to achieve improved success one aspect that needs to be thoroughly market researched is the concept o.competitive Advantage.
.competitive advantage is basically what edge you are providing your customers that other providers of your products/services
are not currently providing.
It is vital to select one of the following .competitive advantage strategies to ensure you make the most out of your online business.
1. Cost
Leadership Focus Offering the same product/service as everyone else but with a cost advantage. For example your cheapes.competitor might be selling the product/service for $40 but you are selling it for $25 (whilst still maintaining profit but allowing you to increase your volume). I know I'd rather 10% of a million dollars than 20% of 100,000.
2. Differentiation Focus Differentiating your product/service in some way that is not currently being performed by you.competitors. Depending on your market segment provide a differentiation to who, what and how you are offering your product/service.
3. Niche Focus A niche focus basically means finding an opening in the market for a product/service which has yet to have been developed with a particular product/service through a unique offering. Don't confuse an opening in the market as a niche, as the niche needs to be an area that will potentially be, or is progressing towards being in high demand. It always pays to do thorough market research to ensure what you are offering will not be in limited supply.
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