By: Aria Spears
Competitive advantage is what sets your business, product, or service apart from the rest. It is a core element of business success, so it must become a focus of your business operations. Read below to learn more about competitive advantage and how it must connect to your Spirit Box team’s overall vision!
What Gives Your Business a Competitive Advantage?
When it comes to your Spirit Box store, what is it that your team wants to achieve? Competitive advantage and vision go hand-in-hand because you often can’t have one without the other.
Competitive advantage can take a few different forms:
Special Skills & Services
A business owner might have skills or experiences that others don’t, giving their business a special advantage. Instead of offering general marketing services, for example, someone may have specific knowledge about the music industry and music industry contacts. This could give them an advantage in reaching different audiences and clients than those with only general marketing knowledge.
Better Quality Products
Another advantage could be higher-quality products. If there are five different diners in the area that offer hamburgers, french fries, and other similar fare, perhaps a business owner could make fresh-cut fries and hamburgers from locally procured potatoes and beef.
More Bang for Their Buck
A business could also offer a lower-quality product for a lower price. This would give their business a cost advantage over the competition. Perhaps a SaaS (Software as a Service) company offers a scheduling platform for $5 a month as an ongoing subscription. This would be different from the $250 one-time fee of their competitor with a similar offering. Though it would add up over time, it is initially much cheaper and could be appealing to a different group of customers.
Brand & Reputation
Another way a business could differentiate itself would be through branding. Using the diner example from above, out of five diners in the area, one might offer similar products at a similar cost. But perhaps their branding is what sets the business apart: It could have a social business mission, employing people who were previously incarcerated. Or perhaps the vibe of the diner could cater to a Gen Z crowd, with niche, unique product names, and a hip design aesthetic. These elements would set the diner apart from the rest.
Location
When it comes to competitive advantage, sometimes being the closest and most convenient option is all it takes. The hot dog carts outside of big office buildings don’t offer gourmet food, but sometimes a simple hot dog hits the spot during a busy lunch hour. If the business is located in a convenient location with a good enough product, sometimes that is enough for customers to keep coming back.
Fresh Product Ideas
A new and innovative product or service can not only attract new customers but keep repeat customers coming back. A great example of this can be found in coffee shops during the holidays. Many coffee shops offer the ubiquitous pumpkin spice latte in the fall, but some coffee shops add their own twist on holiday flavors. Instead of a simple pumpkin spice latte, a shop could offer a pumpkin cold brew with cinnamon foam. Or perhaps they could test out entirely different flavors related to fall such as apple cider, clove, etc. Coffee shops offer new, seasonal product offerings to get customers in the door time after time.
Customer Service
If all else is the same and one business offers a stellar, personalized customer experience, this can help set it above the rest. Consider a service-oriented business such as an auto shop. Auto shops often offer similar services such as oil changes, car repairs, etc. The cost of labor and parts is often the same. So an auto shop could focus on creating an amazing customer experience to help give them an edge over other shops in the area. The shop could offer fresh, delicious coffee and locally-baked treats in a comfortable waiting area. They could offer a couple of easy and convenient ways to schedule appointments. These are simple ways to offer something different than the shop down the street.
Speed & Efficiency
A team can work together to deliver a quality product or service with greater speed and efficiency as another advantage. This not only is a customer benefit, but it can also help to increase margins as the team uses time and supplies efficiently. A classic example of speed is fast-food restaurants which offer quick eats to people on the go. These establishments usually have their processes timed to the second in order to maximize both supplies and labor while delivering a consistent and timely experience for customers.
Constant Improvement
Some business owners take it upon themselves to continue learning and improving. This can be a competitive advantage when other businesses of the same kind tend to operate the same way indefinitely. Nonprofit organizations depend on donors, and often, have a few key fundraising events that have proven successful over time. However, nonprofits that adapt to changing times to reach more and different audiences will have the advantage. Continually improving and learning will help these organizations develop diversified donor bases. This will help the org to endure challenging economic times.
Competitive Advantage & Your Team’s Vision
A company vision is a clear and inspiring statement that describes what your team wants to accomplish in the future. It encompasses the company values in one concise statement.
Given the variety of ways your Spirit Box can stand out, what will give YOUR team’s Spirit Box an advantage over the other vendors? This could lead you to your team's vision.
Here are some examples:
Vision: Become the school merchandise trendsetter.
The advantage: Offer the latest, trendiest school merchandise.
Vision: Create a surprisingly fun vending machine experience that makes people smile.
The advantage: Fantastic customer service every time. Funny, positive branding.
Vision: Be the most convenient way for students to get supplies.
The advantage: Show up to sporting events, practices, etc. with products students will find helpful. Do a vending takeover and offer products at every vending machine in the building.
What next?
It takes a team effort to decide on your team's vision and differentiators. Your vision should be inspiring and get your team excited about how they can deliver on it every time. Set your Spirit Box apart with some of these elements of competitive advantage. We can’t wait to see what you create!
Spirit Box is a turn-key start-up solution that solves many common school-store problems. Students graduate with real-world business experience in customer service, finance, marketing, and more. Contact us today to learn more about how Spirit Box can improve your school!