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Kurai Chitima
Business Consultant, South Africa
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Is Superior Value to Customers a Competitive Advantage?
🔥 NEW Could superior value to customers imply competitive advantage? Considering that competitive advantage is achieving superiority over rivals.
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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
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Providing Superior Customer Value Creates a Competitive Advantage
Yes, Kurai, providing superior value--in whatever form--to customers would create competitive advantage. The challenge for the provider, of course, is to remember that companies are constantly evolving. The metaphor I use is looking at the planet Saturn through a strong telescope. I've done that, and Saturn, with its beautiful rings, is truly a spectacular sight. But if you look away from the planet to have a short conversation with a colleague or companion, then when you look back through that telescope again, Saturn is nowhere to be seen. In free markets, everything is also constantly evolving.
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Jaap de Jonge
Editor, Netherlands
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Is Superior Value to Customers a Competitive Advantage?
Agree with Warren. Superior Customer Value is definitely a competitive advantage. It is in fact one way of accomplishing one of its 3 main forms, being "Differentiation". See the Summary of competitive advantage.
So far that is perfectly clear and simple. But note that actually achieving this is not!
And even if your firm manages to deliver superior customer value, a key issue remains if you can keep on doing that, in other words are you able to provide a sustainable competitive advantage. Because it is really hard to keep on providing superior customer value over time (just like keeping Saturn constantly in focus of your telescope requires constant adjusting).
Moreover, the competition is not standing still. If you are successful with your competitive advantage, other companies will try to emulate and even surpass you.
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John Henry
Project Manager, United States
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Components of Customer Value and Competitive Advantage
Fully in agreement with Warren and Jaap. This value may have more heads than a hydra however:
Quality of the produc...
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Gautam Mahajan
CEO, India
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Customer Value Added
Customer Value Added is the ratio of the Value your company adds to your customers, divided by the Value your competitor...
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Jaap de Jonge
Editor, Netherlands
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Customer Value Added Expresses a Customer Value Advantage
@Gautam Mahajan: Interesting! I understand that one can "calculate" (with many intangibles) this ratio. You could then s...
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Anand Brambha
Consultant, South Africa
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Is Superior Value to Customers a Competitive Advantage?
Superior value to customers is providing them with outstanding products, outstanding quality, and outstanding service at...
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Maurice Hogarth
Consultant, United Kingdom
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Provide what the Customer Needs (and not More)
@Anand Brambha: Some good points. Consider:
- "Quality" is what is required to do the job that the customer wants at a ...
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Gautam Mahajan
CEO, India
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Why Customer Value Added Increases Competitive Advantagew
@Jaap de Jonge: First, a positive Customer Value Added makes more people buy from you. Thus you increase your top line.
...
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Iulian Ursache
Management Consultant, Canada
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Superior Value to Customers as Competitive Advantage
Chasing Superior Value to Customers is a very popular and very obvious approach used by organizations to achieve ...
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Robert Versteeg
Management Consultant, Netherlands
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Two Sources of Real Competitive Advantage
I would like to agree. However research I've studied shows it is not as one dimensional as stated. How to compete, that'...
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Krista Decat
Manager, Belgium
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How to Focus on Strategic Learning
@Robert Versteeg: Interesting approach to this matter. Especially the continuous learning part, which is, in my opinion,...
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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
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Is Any Sustainable Competitive Advantage Possible?
@Krista Decat: Thank you for your interesting comment. For starters, I question the use of the word 'sustainable'. In fr...
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Robert Versteeg
Management Consultant, Netherlands
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Understanding What's it Worth to your Customer
@Krista Decat: A continual improvement process, also in literature often called a continuous improvement process (abbre...
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Krista Decat
Manager, Belgium
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Customers and Providers
@Warren Miller, CPA, CFA: Thank you for your reply and I hope that I will be able to clarify some aspects! I'll start wi...
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martin Anih
Management Consultant, Nigeria
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Continuous Customer Satisfaction is Challenging
@Anand Brambha: Well said Anand, customers and companies have different satisfactions to actualize. Like you said, custo...
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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
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Reply To: Martin Anih
@Krista Decat: My comments are below, Martin:
When you mention that 'the aim of every business is to make a profit and ...
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John Henry
Project Manager, United States
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Superior Customer Advantage
If you do not provide superior customer advantage to the people you provide goods or services for in your business they ...
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Maurice Hogarth
Consultant, United Kingdom
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Who Decides 'Superior', on what Basis?
Q) "Does superior value to your customers mean a competitive advantage?"
A) Yes.
Q) How do you determine what "superio...
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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
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Re: Who Decides 'Superior', on what Basis?
Thank you for a first-rate Q&A. I agree with you 100%.
I hope I don't offend anyone when I point out, yet again, that f...
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Gautam Mahajan
CEO, India
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Why Customer Value Added Increases Competitive Advantagew
Warren, you are right. It is the value you add at time of purchase that determines repurchase. That is why your customer...
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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
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Re: Why Customer Value Added Increases Competitive Advantage
Thank you, Gautam. Would you mind enlightening me about what 'NPS' stands for, please?
I think it's worth mentioning th...
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Maurice Hogarth
Consultant, United Kingdom
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Re: Who Decides 'Superior'?
@Warren Miller, CPA, CFA: Thank you Warren.
Picking up on point 2: It is not unknown for customers to opt for the more ...
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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
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Re: Maurice Hogarth
@Maurice Hogarth: Thank you. I'll just say this: You're preaching to the converted, as surely you must know....
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Gautam Mahajan
CEO, India
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Meaning of NPS
Warren, Net Promoter Score or NPS is the measure of whether you will buy again or not or whether you will recommend.
It...
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