In our efforts to define the value of our web based service to our customers, Matt and I have learned a great deal about the concept of the "Competitive Adavantage".
Seasoned experts will tell you (or at least us) that a true company is built on an unfair or competitive advantage and that success is largely based on how strong or defensible the said advantage is.
Here is how I see it, and I am in no way an expert, infact I still have a lot to learn, so take this all with a grain of salt.
A competitive advantage can come in a variety of forms:
- Go to market strategy (Apple, Hulu, Rent.com)
which can include but may not be limited to partnerships, relationships, exclusive deals.
- Defensible technologies or methods (Microsoft, Oracle, Guinness Beer)
which can include but may not be limited to patents, licenses, methods, ect..
- A unique and clear understanding of your serviceable market and how they use your product or service (Myspace, Facebook, Linkedin)
If you have not defined your competitive advantage yet, fear not, as all is not lost.
I have learned that listening to your customers is more important than trying to build something defensible, after all, if you build something your customers will not use because you focused your efforts protecting it instead of using it, you most certainly will be the only person protecting it and using it when the smoke clears. A perfect example was/is all the digital music copy protection issues over the last 5 years.
Some of our greatest ideas for Asirent came directly from our customers. They know what they need and they know what they want. Do not assume anything, ask a lot of questions, build solid relationships and grow your advantage from there.
Posts
