Creating a Sustainable Competitive Advantage
5 Keys to Repeat Sales, Continuous Profits, and Long-term Viability
Oct 21, 2009
When asked the question, "what is the chief goal of a business enterprise?", many business leaders will say "to make money." However, there is another more fundamental answer which is "to create a sustainable competitive advantage." When an organization creates a sustainable competitive advantage, they will have repeat customers, continuous profits, and ensure long-term viability. This article discusses five keys to establish a long-term comparative advantage.
Establish Brand Loyalty
Ultimately, the master key to a sustainable advantage is building brand loyalty. When an organization builds brand loyalty, it will enjoy a continuous stream of repeat business. Furthermore, well-satisfied clients tend to refer their friends and colleagues to those enterprises that treat them well. The bottom line for brand loyalty can be stated in one word, "trust."
How does an organization create trust and thus brand loyalty?
To Gain a Competitive Advantage Develop Quality Character and Products
Trust is built and maintained through a continuous display of good character and quality products and services. When a business enterprise gains a reputation for fair treatment as well as reliable and relevant products and services, its customers will be more than satisfied and come back for more.
How does an organization develop quality character and reliable products and services?
To Build Brand Loyalty Make Good Decisions
Good character and quality products and services are the result of good decision-making. Decision-making is the process by which organizational leaders determine how to respond to the internal and external factors that do and or will have a positive or negative impact on their business or organization.
How can executive teams make informed decisions that will drive their business forward?
To Gain a Competitive Advantage Formulate a Relevant Strategy
An executive team can make informed decisions that drive their business forward by formulating a relevant strategy that guides day-to-day decision-making. A strategy is a blue print, master plan, or road map by which an organization operates. A strategy should be relevant to the business environment and the corporate entity. When an enterprise takes the time to map out where it wants to go and how it wants to get there, then the executives and other organizational leaders are better able to make good decisions.
How can business leaders formulate relevant strategies?
Understand the Internal and External Business Environment
Business leaders can formulate relevant strategies by being constantly aware of what is happening within their respective industry and the world at large. In tough business times, it is easy to become overwhelmed with day-to-day operations and lose sight of what is up ahead. Successful enterprises create a sustainable competitive advantage by staying aware of the internal and external factors that have the potential of having a positive or negative impact on the their business efforts.
In this way, business leaders and corporate executives can create a sustainable competitive advantage and ensure continuous profits and long-term viability.
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