Business Concept 1: Competitive Advantage

For any business to survive in the long term, it must have a competitive advantage, or edge. To keep customers coming back to that business, it must have an edge over its competitors. Put simply, a competitive advantage is where you are able to provide goods or services which are:

• better
• faster
• cheaper

than your competitors'. 

You don't have to have all 3 of the above to have an edge over the competition. Just 1 or 2. If you can have all 3, that business will be a monopoly player in the industry. 

If you're in business or starting out a business, as youself, what is it about my product or service that is better, faster or cheaper than my competitors? If you can't answer this question, you might have huge challenges facing current and upcoming compeitors.

Who is a good competitor to go up against? Government Linked Companies (GLCs)! Why? Because government agencies are mostly inefficient in terms of operations and cost. Nobody looks after quality, they are slow, and nobody cares about the bottom line. Just look at the opportunities they create:

Astro Satellite TV: We have such bad quality programmes shown on national TV, the public is "forced" to subscribe to satellite tv to get better content for their entertainment. National TV is free to air, but people are willing to pay for a better service.

(Example of doing things better)

Toll Infrastructure Projects: Rather than waiting for government approval of funds, getting the work organised, etc, private companies can get the whole process carried out faster. They fund and build the highway themselves, stick a toll booth there, and the public pays for a service that would require the government another lifetime to have completed because of lack of funds, beauracracy, etc...

(Example of doing things faster)

Air Asia Airline: The national carrier, being the monopoly player in the field, never put operational and cost efficiency as priorities. Now this budget airlines are taching them a lesson or two in operational and cost efficiencies. For customers who percieve air travel as only getting from point A to point B, the full service carriers lose the edge of having a better service to the budget airline's edge of being cheaper.

(Example of doing things cheaper)

The above are some examples of how inefficiencies create business opportunities. When you get an edge over the competition, don't forget to keep looking back as competitors do not just sit on their hands doing nothing. Keep sharpening your edge and don't lose it.

"If you want to be successful, be a professional (referring to a specialist in a field), because amateurs get killed" 

- Quote from a self-made managing director whose company has a turnover of Sg$ 15 Million a year. Also echoed by a businessman who became one of the first few to own the latest Mercedes S-Class when it was available in my hometown.