Find out how to put a competitive strategy into practice in your company – WAU

Competitive strategy is the way in which an organization can differentiate itself from the competition that exists in the market. So, even if direct or indirect competitors become a threat, this strategy can contain it.

Everyone who works with marketing management has the constant challenge of developing projects and actions that bring the results expected by the company. One way to do this is through a competitive strategy.

After all, if the market becomes increasingly competitive with the arrival of new competitors and the strengthening of those that already exist, this strategy can bring the necessary differential for your company to achieve its goals.

And for you to understand the definition of competitive strategy, why it is so important and how to set it up within your company, continue reading this article.

What is a competitive strategy

Competitive strategy is the way an organization competes with other market competitors in order to have an advantage. Therefore, it can also be seen as a way to stand out from the competition, especially in areas that are very disputed.

Thus, when using this type of strategy, it is possible to take the company to the status that it so desires to occupy, by working with different market actions.

So the first step is know the product and the profile of its consumers well to find out what value they are looking for in offers like yours, how much they are willing to pay and what the competition is offering them.

Some companies tend to develop strategies based on their previous marketing and sales experiences and aiming to obtain results in the short term.

However, to achieve results that have not yet been achieved, you need to perform actions that have not yet been done, in addition to taking into account that the achievement may arrive in the medium or long term. Doing this is essential, for example, in Digital Marketing, given how dynamic this area is.

Once the competitive strategy is built, you can raise a series of differentials that your organization has in relation to the competition, in addition to detecting new opportunities and inhibiting the arrival of new competitors to the market.

What are the types of competitive strategy

Now let’s see what are the main types of competitive strategy that you can apply in your company.


Regardless of the market in which a company operates, it is very common to find customers who always seek the best price when closing a deal. So, it is important to take this into account in your marketing management.

Typically, organizations that offer better prices are able to do so after bargaining the cost price with their suppliers and resorting to a minimum profit margin.

The great advantage of this strategy is the gain obtained over the high sales volume. After all, because the price is cheaper, more people will buy and the revenue will be higher.


When adopting this type of competitive strategy, you must present the market with characteristics that are unique in the offer of your products or services.

Unlike the cost strategy, here you can work with higher prices, as long as your solution brings a differential to the point of making the public see added value and be willing to pay more for it.

For example, WAU University’s Digital Marketing courses have a market differentiator: they teach the same techniques used by Websites Are Us itself and which has made it the largest Content Marketing company in Latin America. This is a value that, in the end, makes students buy premium courses.

Focus cost

This type is similar to the first one we mentioned. However, here, companies select a specific market segment and offer it more affordable prices.

The advantage of this strategy is to fully satisfy the target audience and strengthen the brand within that market.

Another example of Websites Are Us is the WAU Stage, a WordPress solution that offers both robust plans for companies and affordable prices for marketers who want to create their first blog.

Differentiation focus

The latter type further narrows the differentiation strategy. However, here, the focus is to differentiate yourself from few competitors. Although it works with a smaller number of consumers, the idea is to offer options for customers who choose to buy from the competitor because they do not find any specific characteristics in their product or service.

Let’s take another example (and jabá): many companies look for Websites Are Us to produce their content. However, content alone does not bring results, as it needs to be inserted into a Content Marketing strategy, which is exactly what WAU does and, therefore, this is its focused differential.

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Why it is important to discover your competitive strategy

Now that you know the main types of competitive strategies, regardless of which one you choose for your company, it is important to stress to your team the reasons for adopting it.

After all, sometimes people from other departments can see points that even you, as a manager, cannot. So, by involving colleagues and members of other teams in the strategy, it will become clearer and more concise for achieving results.

For that to happen, be aware of everything that happens in your market, preferably through competitive intelligence actions.

The competition must be monitored as well as the behavior that the consumer has when contacting his commercial team and the competitors.

If new technologies emerge in your area, you need to follow them as well. After all, using them can make all the difference both internally among your team members and externally in customer service.

When considering the points above, you will be prepared to put together an action plan whose strategies can make your company achieve the objectives so sought. And if you’re wondering how to put this plan together, don’t worry. That’s what we’re going to teach now.

How to build your company’s competitive strategy

To build a competitive strategy, it is necessary to know the 5 Porter Forces coined by Michael Porter, one of the biggest names in the administrative and economic field. Are they:

  • rivalry between competitors;
  • threat of substitute products;
  • bargaining power of customers;
  • threat of new entrants;
  • bargaining power of suppliers.

From this concept, we will present 5 steps that you must follow to build your competitive strategy.

1. Create a rivalry map

This is the central point of Porter’s strategy, as it is connected to the other, thus being the most important part of the analysis. For example, if you do not identify your competitors well and understand how your rivalry with them is, it can jeopardize the success of the entire strategy.

Therefore, try to make this analysis with great caution and time availability. After all, that is why we said that a competitive strategy must be worked on in the long term. When raising competitors, for example, remember to consider both direct and indirect competition.

Also consider using the 4Ps of Marketing to determine how other companies that compete with you behave in relation to:

  • O product or service that they develop;
  • at squares where they work;
  • O price that they offer;
  • the kind of promotion They do.

It is also recommended to do a SWOT analysis to identify what your organization’s strengths and weaknesses are, as well as threats and market opportunities.

2. Identify your threats

In this second step, you must survey what your competitors have that may pose a threat to you.

These threats can be both products and services similar to yours, as well as novelties that hinder your sales through indirect competition.

To stop them, when setting up your competitive strategy, list all the competitors that offer your potential new customers benefits similar or better than yours.

3. Exceed customer expectations

In increasingly competitive markets, customers are no longer looking for the best cost-benefit ratio, but also for more affordable prices, better payment terms, personalized service, among other factors.

So in this step, notice how your customer behaves, both in your company and in the competition.

Thus, if you realize that your price is above the market average and that this is scaring customers, you will need to develop a form of pricing that covers the offers. If customers are not seeing a difference between your offer and that of competitors, you will need to add more value to your product or service.

4. Be prepared for new competitors to come

As much as your company is doing well and earning as never before, she must not settle. After all, if a new competitor suddenly appears, you need to be prepared and know precisely what to do.

Even if your offer is unique and the one that best serves your target audience, it can be overcome at any time by someone who is already in the market or has just entered it. Therefore, your strategy needs to be in a constant process of improvement and developing actions that create barriers to the entry of new competitors.

5. Have more suppliers

Having few suppliers of products or services is very risky, as this leaves a business totally dependent on them. Imagine how bad it would be to go through the situation of the supplier letting you down and you are unable to deliver to the customer what he bought.

So, in this fifth and final step, raise more supplier options that meet the requirements of its management.

As you saw in this article, it is essential that your business has a good competitive strategy, so that its differentials guarantee a good position in the market. Thus, even if new competitors appear, your customers will have no reason to migrate.

Now that you know how to build a competitive strategy, you must have realized that having a differentiator is its main competitive advantage. And to find out more about it, check out the article “Understand what competitive advantage is and how to create it in your business” right now.