What are the key metrics and indicators to measure your competitive advantage?

1 Define your competitive landscape

Before you can measure your competitive advantage, you need to know who your competitors are, and what they offer. You can use various sources and tools to identify and categorize your competitors, such as industry reports, online directories, social media, customer feedback, and web analytics. You should also consider both direct and indirect competitors, as well as potential entrants and substitutes. A useful framework to map your competitive landscape is the Porter's Five Forces model, which analyzes the level of rivalry, bargaining power, threat of new entrants, threat of substitutes, and industry attractiveness.

2 Choose your competitive metrics

Once you have identified your competitive landscape, it is essential to select metrics that will help you evaluate your competitive advantage. These metrics should be reflective of your objectives, value proposition, and customers' needs and preferences. Some of the most common competitive metrics include market share, which is the percentage of the total market that you acquire through sales; customer satisfaction, which is the extent to which your customers are content with your products, services, and interactions; brand awareness, which is the degree to which your target audience is familiar with and can recall your brand name, logo, and attributes; product quality, which is the extent to which your products meet or exceed the expectations and standards of your customers and the market; and innovation, which is the capacity to create and launch new or improved products, services, or processes that add value and differentiate you from your competitors.