Your target customer is the core group of customers who are most likely to do business with you. Whatever you determine your competitive advantage to be, it must be important to this core group of customers. If it is not an important factor compelling them to do business with you, then it is not a competitive advantage. Understand your competitors. Another factor in arriving at your firm s competitive advantage is to analyze and understand your competitors.
All businesses have competitors.
Understanding their competitive advantages can help you determine how you are going to differentiate yourself from your competitors. Remember that customers must see some uniqueness or some difference in your business in order to separate your business in their eyes. Be careful not to downplay your competitors. They most likely have a competitive advantage or they would not be a competitor. All too often the market is saturated with struggling businesses of the same type because customers do not view any real difference between them, so one is as good as the other.