Identifying a competitive advantage involves a thorough analysis of both internal and external factors:
SWOT Analysis: This tool helps entrepreneurs examine their internal strengths and weaknesses, as well as external opportunities and threats. It provides a comprehensive view of where the business stands and what can be leveraged. Value Chain Analysis: This involves analyzing the series of activities that a company performs to deliver a valuable product or service. By optimizing these activities, businesses can create a competitive advantage. Benchmarking: Comparing performance metrics with industry leaders helps identify areas where the business can improve and gain an edge over competitors.