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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Consumers prefer to choose online retailer due to reliability, comfortability and effective customer service.  E-commerce experienced gives business a more competitive advantage compare to those who don't. Due to wide variety of selection of product provided online have give consumer more option to choose. Along with technological advancement the effective relationship among customer have meets a high volume of satisfied consumer. With constant online communication which they call as virtual community now a day, it  gives innovator an idea to create or produce products based on what consumer wants and can attract more customers. With great marketing strategies towards competitive advantage this can create excellent customer service satisfaction that lead to a more sustainable competitive advantage. Online shoppings are more convenient, more options to choose and its comparable. According to Internet World Stats 2016, there's about 46.4 percent around the world are using internet. And so, marketing and selling your business  product online is a tricky, risky and it can be rewarding. Competitive advantage strategies are important for the success of the business. And it is important that organisations sustain the above strategies for product improvement and to upbeat the competitions. So what is Competitive advantage? How Online Business can sustain the high competition in 21st century? And how to identify customer needs? This paper aim to understand how to sell and market your product using Competitor Analysis and how to sustain competitive advantage.

Creating close relationship with customer to gain competitive advantage

To gain valued customer it is true that knowing and providing what they want can create loyal customer and will increase numbers of potential customer. But it is also important that adding value to your product can gain more profitable outcome. It is best to anticipate not only providing customer needs but also business need to be diligent in doing research and keeping your business on the loop. Providing excessive customer expectation can increase loyal customer when they are satisfied with product or services offered. This will create a more competitive advantage against rival. Kotler defined Competitive Advantage as “An advantage over competitors gained by offering consumers greater value than competitors do”. Kotler also state that having good marketing strategies can add value to customer. Why? It is because marketer makes your company look attractive to consumers and religiously studying competitors analysis will gives you a heads up to find their weaknesses and to know your company strength.

Competitive Analysis

Kohler suggested that to create a competitive advantage organisation must know their opponents. This is an important aspect of the business that used to determine competitors strengths and weaknesses. It is important that business used this strategy to know and gain competitive advantage against competition. With this strategies it can help organisation to investigate competitors. You need to know who will be in your market competition and its product information when running a business. These product information includes prices, specification, their promotions, who's their connection and how they market its product.  For example you owned the Alibaba, you the need to know who's competing against you. This online/wholesale business are competing against customer satisfaction and wide variety of product offered which connected with competitive strategies. Alibaba competes against Ebay, Amazon, etc. As Alibaba, needed to know each competitor to look out how they work, whats their strength and lies ahead. Using SWOT analysis, this then can determine their strength, know their weaknesses, what is it that threaten your business to change it and lastly create an opportunity that will give your business to build up an increate profitable growth. This competitors analysis it will help business to innovate something that has not offered by competitors. With this strategy it can help marketing personnel to make an effective marketing plan (Kotler 2012, p.90-95).

Competitive strategies - online business

There are different kind of competitive strategies and each company have its unique way of running its business. Others are focusing towards uniqueness, others want to build up customer by providing low cost product and more ways to strategies and add value to business competitive status. Professor Porte identifies three types of basic competitive strategies that can position your business competition in order to influence consumer decisions and for the success of the business are; cost leadership, product/services differentiation and the focus strategy. To deliver a superior value to customer satisfaction and gain leadership position, Kotler suggested to pursue the value disciplines which consist of three types and they are Operation excellence, Customer intimacy and product leadership. To create a successful competitive advantage, business must focus on how to satisfy consumers instead of focusing on competition. Knowing your consumers want and provide them with value added product can promote and acquired a strong competitive advantage against your competitor. As mention above there are three types of competitive strategies and in this section I will focus how this competitive strategies can lift your business. In terms of product advantage, consumer tend to differentiate before they buy their needs or wants and compare its cost price these kind of actions tend and mostly happen when shopping online. Online shopping is a way to shop electronically and it is easy to differentiate cost, quality and valued to certainty. Those three types of competitive strategies are the main influence of customer decision. Consumer are always looking for products/services base on quality provided, cost and value added. With all those types of competitive strategies, these can  add value to chain strategy which was first introduce by Michael Porter on 1985 and this value chain is an over all flow process of production of business activity that gives end user or customer a feeling of satisfaction and valued.

There are three types of competitive strategies

Cost leadership is a type of strategies that company are utilising the low costs to create maximum value to customers. With the low costs in supply chain this then can lower product price that able to minimise cost of production to create low cost production and distribution. For example, Alibaba, EBay or Amazon are some on online business/retailer that were popular for consumers budget.  Those online retailer produce goods that are accessible to anywhere in the world providing internet is available. This can also help business to business to globalise their supply chain to reduce operating costs. Another example of cost leadership strategy is the airline companies. Most of the airline company like Qantas, Singapore Airline and others have let passenger to do online check in before their flights. With online checkin implementation this can reduce queue less time will consume equals save employment cost. This strategy are highly successful but hard to implement it is because you need to minimise you production costs to provide low cost product. Goods or services differentiation is another competitive strategies that offered to consumers in which customer will choose when its at low price. This differentiation are valued by consumers. This is were company offered something more than just a low price.  Sometimes, cost leadership can dematerialise if another competitors enters with same low cost strategy in which offer the same product but lower that what you offer. With this differentiation strategy you can gain loyal customer easy and maintaining your company brand/reputation gives a competitive advantage towards competition. Lastly, Focus strategies are strategy used by company who focuses to certain market. Business used this strategy based on particular group of buyer. Example business that offers this type of strategy are business that price of their product at premium price like MYER or David Jones. In which they only offered goods that are limited to their store only.  According to Kotler, the competitive strategies above can help business to performed well.

Sustaining Competitive Advantage

According to Forbes, Alibaba has increasingly and maintain its positional growth in the e-commerce market. Alibaba success based on research it is because of huge competitive advantage towards competitors (Forbes 2016). How did Alibaba became huge? As a matter of fact, I am a huge fan of Alibaba. I bought some things in there for my business in Philippines. If you visit there website you can see that they offer offline message and you can get response quicker than you expected. And what is best is you can communicate directly to supplier. If you want to order something you have specifically in mind that you want them to make for your business. This can make happen with Alibaba, you say they make. In my opinion and based on my experience this business became big because of its efficiency. An immediate response in your question is a big plus. Also, the effectiveness of its activity has advance them to competition. Alibaba strong competitive advantage in online business marketing strategy has given them a head start to competitors. With Alibaba, they produce supply that other supply are unable to provide and they offer greater value of product compared with competitor. With that it enhanced consumer relationship and understanding consumer need bring them a lot of ROI. And its due to low cost consumer tend to go with Alibaba because of its cost leadership. Alibaba sustainable market due to its long term management in cultivating customer relationships and establish the leadership in e-commerce. Exceed customer satisfaction has position Alibaba towards it's outgrowing success.


With great marketing strategies this will lead your business to become successful. Uniqueness beats competitor because they are unable to copy the way you exercise your business. Using different kind of competitive advantage to your business shows more successful compare to those who don't have. A strong competitive advantage shows its performance with their profit. Attracting a large based consumer  in the market help business like Alibaba to built a strong connection between consumer and the  business. High standard to their service is one of the reason of their success. Online business in 21st century is huge that almost 50 percent of world population are using internet. It is a matter of strategies your business and sustaining its competitive advantage that make your business successful.

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