Impact of Customers on Competitive Advantage
For most businesses, there exist other entities that produce the same products as they do. Therefore, each business has to do all within its capabilities to attract more customers than its competitors. Customers are therefore important as they impact on an entity’s competitive advantage. A common characteristic of successful businesses is that they are able to adopt strategies that boost their competitive advantage. One of the successful companies is IKEA. The impact that this investment has had is that more customers have been attracted to the entity’s warehouse. IKEA has also fitted its store with decorative elemental displays which include artifacts. These beautiful displays directly impact on the customers’ experience in the stores. Therefore, customers feel free and relaxed while in the warehouse.
Thus, more customers are attracted to buy at IKEA thus boosting its competitive advantage. The atmosphere at the premises enables customers to interact with one another, with the employees and with the systems in a much easier and comfortable way. As a result, customers enjoy being within the premises of the firm. Consequently, customer loyalty is boosted and more customers get attracted to buy at IKEA. The quality of products a firm offers contributes to the size of its market share. In addition to quality, goods and services produced should be offered at a low price. Having a variety of products under one roof has helped IKEA maintain its competitive advantage. Provision of incentives to customers also helps a company boost its competitive advantage.
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