How do you identify competitive advantage and differentiation for clients?

1 Understand the industry and customer needs

The first step is to understand the industry and customer needs of your client. You need to know the size, growth, profitability, trends, and drivers of the industry, as well as the segments, preferences, behaviors, and pain points of the customers. You can use tools such as Porter's Five Forces, PESTEL, and Value Chain Analysis to assess the industry attractiveness and the sources of value creation. You can also use tools such as Customer Segmentation, Customer Journey Mapping, and Jobs to be Done to understand the customer needs and expectations.

2 Assess the current position and performance

The next step is to assess the current position and performance of your client in the industry and customer segments. You need to know how they compare to their competitors in terms of market share, revenues, costs, profitability, quality, innovation, and customer satisfaction. You can use tools such as SWOT Analysis, Benchmarking, and Balanced Scorecard to evaluate the strengths, weaknesses, opportunities, and threats of your client, as well as their key performance indicators and objectives.

3 Identify the sources of competitive advantage and differentiation

The third step is to identify the sources of competitive advantage and differentiation for your client. You need to know what makes them stand out from their competitors, and what value proposition they offer to their customers. You can use tools such as Value Proposition Canvas, Unique Selling Proposition, and Blue Ocean Strategy to articulate the benefits, features, and emotions that your client delivers to their customers, and how they can create new or uncontested market spaces.

4 Validate and test the assumptions and hypotheses

The fourth step is to validate and test the assumptions and hypotheses that you have made in the previous steps. You need to know if your analysis is based on reliable data, evidence, and feedback, and if your recommendations are feasible, desirable, and viable. You can use tools such as Data Analysis, Surveys, Interviews, Focus Groups, and Prototyping to collect and analyze quantitative and qualitative data, and to test and refine your ideas with real customers and stakeholders.

5 Communicate and present the findings and recommendations

The final step is to communicate and present the findings and recommendations to your client. You need to know how to structure, design, and deliver a clear, concise, and compelling presentation that showcases your insights, solutions, and impact. You can use tools such as Pyramid Principle, Storytelling, and Slide Design to craft a logical, engaging, and persuasive narrative that highlights your client's competitive advantage and differentiation, and how they can sustain and enhance it.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?