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Offer advantage

A company has an offer advantage when its product or service stands out from the competition by meeting a unique customer need by incorporating special features that are highly valued by its customers.

A true offer advantage is easily perceived by customers. It leads to increased brand loyalty and allows the company to sell its products at a higher price, if it chooses to do so.

An offer advantage is one of three ways a company can create a competitive advantage, with the other two being a cost advantage (producing a product or providing a service at a lower cost) and a niche advantage (serving a specific segment of the market better than anyone else). Excelling in at least one of these three ways while remaining competitive in the other two puts a company in a strong position to gain market shares and improve its profitability.

More about offer advantage

If a sandwich shop makes sandwiches with a unique kind of bread based on its own recipe, it has an offer advantage because nobody else in its neighbourhood is using that kind of bread. The company can leverage this advantage in two ways.

  • It can charge the same amount of money for a sandwich as its competitors but gain a larger share of the market because more people prefer its bread.
  • It can charge more than its competitors, in which case it might not grow its market share but its margins on each sandwich would be higher.