20 07 2020

Your advantage over competitors is the opening of a company in the UAE

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To get started, it's worth making it clear that competitive advantage is what sets you apart from the rest. The modern world is full of abundance of goods and services, so it is important to find how you will differ from your competitors. This may be a more convenient location, access to material resources or the availability of skilled labor. As a rule, it all comes down to the fact that you offer more value to the client than your competitors.

If you are opening a company in the UAE, then consider that you already have one competitive advantage.  The fact that opening a company in the UAE is an advantage has been felt by many companies. Firstly, you are exempted from income taxes, import and export tax within Free Economy Zones. One of the indisputable advantages is a good geographical location. In addition, the state is making every effort to make the UAE the financial center of the Middle East, so innovation is strongly encouraged.

There is no need to invent anything when formulating a competitive advantage. Conduct competitive intelligence, identify their weaknesses and strengths. The best way is to choose about 5 major competitors and interact with them under the guise of potential customers. Thus, you can collect all the necessary information and draw conclusions.

You may have heard of Michael Porter, an American scientist who specializes in competitive strategy in the field of economics. Michael identifies 2 ways that any businessman can go and achieve a competitive advantage.

    1. Pricing policy.

    2. Improving your product, adding appeal and value. If you use the 2 method, it will help to significantly stand out among peers, attract the attention of a potential client, and thereby increase sales.

Porter describes 3 specific strategies to achieve a competitive advantage that will contribute to the fight against opponents:

    1. Cost saving - you produce goods with less cost than similar manufacturers;

    2. Product excellence - your product is superior in quality;

    3. Flexible strategy - this strategy is often used by small businesses. It consists in working in different markets at the same time.

If you have a competitive advantage, then your customers will focus on it. If there are no advantages, then customers will look for disadvantages.