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Value Proposition vs. Competitive Advantage

Watch this video to find out the difference between Value Proposition and Competitive Advantage.
So entrepreneurs often times get confused between unique value proposition and unique competitive advantage, and I understand why because they are similar in some ways, but let me talk a little bit about the differences, first of all unique value proposition it’s all about the customer, right? that’s all that we were talking about as a customer. When we talk about competitive advantage is much more about the market, and how you position in the market. Now, a value proposition should be unique but it’s not essential. In a competitive Advantage, a unique competitive advantage is essential you need to be unique in that.
The other thing is that a value proposition is really used much more for your marketing and your messaging, when your unique competitive Advantage is much more about the market and how you position yourself accordingly. So don’t get the two confused. So let’s take a look at a quick example. I think Google search because I love Google and I use it every day and so do you, so first thing, what’s the benefits to the customer? What’s the benefit to me specifically? Well I know that when I type in in a search, I’m going to get the most accurate result possible and that’s really important for me. It’s very fast.
I get my results as fast as any search engine out there, I love that, right? It’s easy to use! I don’t really have to think a whole lot, and Google actually answers my questions before I even have to ask them sometimes, that’s how smart the engine is. So to me, those are all really important things to me, but what about their unique competitive advantage? Well, couple of things, from the consumers perspective. I don’t care so much, but from an industry perspective is very important. First thing is that the largest index is on the internet, which is amazing. Second thing is that they have the most accurate search technology available, which is great in the industry.
I am a third thing is they have more users than anybody else. But again as a consumer, I don’t care about those things so much as an industry and positioned, I do. So you can see the difference, between what I care about and versus what how their position in the industry and that’s the difference between value proposition and competitive advantage.
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