Using Business Locality to Gain Competitive Advantage

Having a defined locality from which a business operates can however be used to gain a competitive advantage. By appealing to customer’s loyalty based on their locality a small business can attract orders by focusing its marketing efforts within the designated area.

With the growth of larger businesses the ability of smaller local enterprises to compete effectively has diminished as bigger entities are able to undercut the prices, provide nationwide support and offer a more extensive range of good and services.

A potentially potent and free method of advertising within a specific locality is through word of mouth. Neighbours and communities frequently discuss and exchange comments on purchases made and commissions undertaken by businesses and will hold views on whether to recommend a supplier or to steer others away from that establishment.

As part of the business planning process, a sole trader, partnership or limited company can construe a specific local geographical area in which it wishes to concentrate.

Their resources, whether marketing, customer services or networking can then be applied so as to gain advantage and full benefit from the release of these resources.

There is a philosophy in business when viewing a particular industry which states that only a proportion of any particular market can ever be won; that no single business can cater for the needs of all customers.

In this vein, the local business need not attempt to compete with regional or national enterprises as if it was successful, it would simply be replacing income earned in one area with revenue gained in another.

The principles of competitive advantage therefore mandate that the local business should use its strongest advantage, i.e. its locality to achieve its share of the market.