All businesses need to differentiate and all businesses need to find their competitive advantage so let's take a look at a mobile oil change business, a small business in the service sector. How can a mobile automotive service business get a competitive advantage over the competition? Remember there is virtually no market in the United States that does not have multiple players in the sector.
A mobile oil change business has to compete with large box stores which often have the same services, as well the numerous quick oil change and lube companies. Now some might say that it is quite the competitive advantage for a mobile operator business to be able to go to its customers. And many might also say that this is a competitive advantage due to the fact that it saves time and money. But can a such a business really compete with a big box store that offers oil changes?
For instance, Wal-Mart has auto services at their super stores and generally their prices under $15.00 for an oil change. With the cost of fuel to drive the service van or unit around town you can see that it might cost $15.00 just to deliver the unit to the customer's car. So whereas the portable operation may give a competitive advantage and be more desirable by the customer, is very difficult to make a profit if you lower your price to compete with the other companies in town.
Additionally most markets in the United States of America have more than one service of this type competing on the same turf or territory. So, the competitive advantage may not be quite as simple as you might think. So, be careful not to assume a competitive advantage that turns out to be a competitive disadvantage. Think on this.
