How do you assess the competitive advantage of a product or service in the market?

Sample interview questions: How do you assess the competitive advantage of a product or service in the market?

Sample answer:

Assessing Competitive Advantage

1. Market Research: Conduct thorough market research to understand the target market, their needs, and the competitive landscape. Identify key competitors, their offerings, market share, and strengths and weaknesses.

2. Product/Service Analysis: Evaluate the product or service’s key features, benefits, and unique selling proposition (USP). Consider its differentiation from competitors, potential market gaps it addresses, and its value proposition to customers.

3. Competitive Positioning: Determine the product or service’s competitive positioning in the market. Consider its pricing, target segment, perceived value, and the extent to which it meets customer needs.

4. Value Chain Analysis: Analyze the entire value chain, from sourcing and production to distribution and customer support. Identify areas where the product or service excels or falls short compared to competitors, and explore opportunities for improvement.

5. Porter’s Five Forces Analysis: Evaluate the industry’s competitive forces, including supplier power, buyer power, threat of new entrants, threat of substitutes, and rivalry among existing competitors. This analysis provides insights into the intensity of competition and its impact on the product or service’s competitive edge.

6. SWOT Analy… Read full answer

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