Small Business Strategy And Offer A Model Approach

Abstract One of the most critical activities for a business is to gain and sustain a competitive advantage. This activity can be difficult and time-consuming, especially for a small business where there are many businesses already established in the same industry. Unfortunately, some new business owners do not understand how to gain a competitive advantage or they fail to recognize how important doing this can be for the success of their company. Some new ventures do not secure a market position where there is a reasonable chance of success. Other ventures will struggle to compete with larger competitors, focusing on price. And still other new businesses believe that just by opening their doors, consumers will hurry to buy their†¦show more content†¦The first stage in which a new or small business should develop an effective competitive advantage is the market entry stage, although it is important to continue to develop and â€Å"tweak† this strategy all throughout the business life cycle. To successfully enter a market, it is imperative that entrepreneurs develop a sound competitive advantage strategy that will allow them to gain a significant market share to guarantee that the business will succeed. Simply putting an open sign in front of your doors and allowing the public to enter does not ensure a successful venture. It is difficult and rare for a small business to effectively compete with larger businesses and corporations in price, so entrepreneurs should contemplate other competitive approaches to gaining market share. Developing competitive advantage has three key core components (Winer, 2004). According to Winer (2004), the first component is that â€Å"competitive advantage must be able to produce customer value, which is defined by the consumer as lower prices, convenience, or quick delivery time†. The second core component is the enhanced value of the product or service provided as perceived by a consumer. Whether or not your product is superior, it must be seen as such by the consumer. Finally, the third component to competitive advantage requires that the business approach an entrepreneur uses should be difficult for competitors to duplicate. An