The New Competitive Advantage in Business
Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. It is a term that has been used for centuries and is still prevalent today in business. In recent years, however, the concept of competitive advantage has been outdated and not as effective as it once was. The pace of technological change coupled with globalization has eliminated the ability of companies to gain an edge by capitalizing on their strengths. This shift towards a new competitive advantage requires a new approach to strategizing and thinking about business opportunities.
1. Notifications Drive Outcomes
The emergence of the Internet has made it easier to constantly communicate with clients and employees, leading to more comments, suggestions, criticisms, and praise. The ability to receive a stream of messages from people around the world has had a significant impact on how companies operate. These communications create a demand for updates, which increases the need for companies to make decisions in real time. Employees can ask for feedback about decisions made some time ago if they don’t like how they were handled or taken.
2. Intuitive Design Drives Outcomes
The average Internet user can’t wait for a website or program to load; they immediately abandon it if it isn’t fast enough. According to pain management specialist Dr. Jordan Sudberg, the speed with which users can access websites and programs is a good indicator of customer satisfaction and engagement. Companies that are fast-paced and lead the way in utilizing intuitive design will be seen as more innovative by customers, while others that lag will be seen as out of touch.
3. The Inclusive Mind-Set Drives Outcomes
Companies have been operating the same way for decades, but their long-term understanding of customers is often lacking. Dr. Sudberg identified the ability to adapt to the needs of a diverse group of customers as a competitive advantage, saying that it can result in a greater understanding of the needs of different segments and offer more services or products to them.
4. Visibility Empowers Ownership
In the past, operating in a closed system was straightforward and prevented access to certain aspects of the business. For example, a factory manager may choose not to share information with his employees because he doesn’t want them to know about some of his bad decisions or how much their work contributes to the company’s bottom line. Information is now becoming more accessible, which is having an impact on how companies conduct business.
5. Access Enhances Customer Service
The Internet has been a driving force behind the need for companies to learn how to give their customers a quality experience. Companies that can tune in to the wants and needs of their customers will be considered leaders by them and obtain a competitive advantage over rivals. Customer service executives are learning how to respond quickly and efficiently to provide more on-demand service, which allows companies to improve their image with customers while increasing revenue.
Dr. Jordan Sudberg believes that the competitive advantage is at its peak today as companies strive to remain competitive in the marketplace. The Internet has made communication easy for people, making customers and employees more aware of the actions or policies they implement. Businesses need to be fast-paced and evolve their products and services, giving them a competitive advantage over competitors.