Competitive advantage increases revenue by 30% over the competition or decreases cost by 30%.
Here are five sources of competitive advantage:
- Recurring revenue
- Channel access
- Platform based solution instead of singular products.
- Network effects in action–the value of the product increases with the number of users
- Virality (not the same as network effects) (users invite other users)
A platform-based solution is a competitive advantage over a single product as it provides a solution that works for more than just one type of customer. Platform solutions have a lower cost than single products because you can reuse the research, design, architecture, packaging, and other aspects.
Platforms also reduce the cost of supporting the customer as you can reuse support resources.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies