When it comes to operating a successful business, entrepreneurs must seek to highlight their company’s competitive advantage. In business, competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. This leads to more sales or greater margins when compared with these rivals.
The Pearl West Group knows the importance of highlighting competitive advantage as they are a part of an industry that has become saturated over the past few years. The company, which Jason Kwan chairs, is an Amazon seller and mergers and acquisitions group. They compete in the lucrative eCommerce space and have seen many players joining over the past years. Kwan highlights some of the competitive advantages of the company.
Intimate Knowledge of the Business
To acquire another company, the acquiring firm must have knowledge and understanding of the business they intend to buy. Kwan states that this is one of the strengths of the Pearl West Group. “Our competitive advantage is that we started as owner-operators of these types of businesses. There’s been a lot of attention on new people coming into the space with the same thesis of buying and aggregating Amazon brands, but we’ve been in the Amazon space for over three years.” Knowing the industry coupled with experience can aid any company in rocketing to the top of their game. While being financially stable is necessary, it is no good if those who have the funds don’t understand how to spend it.
Robust Systems and Strategies
To gain an edge over their competitors, businesses must develop robust systems and strategies that have been tried and proven. Kwan states that his company understands that scaling can be challenging, so they’ve created systems that help with this. “When we acquire a brand, there are checklists that we run it through to optimize the brand. We look at everything from optimizing the supply chain, improving PPC performance, new facelifts for the product, keyword ranking, international presence, branding, optimizing the listing quality, and much more. We essentially build a road map for the brand and rebuild things from scratch if necessary. It’s our secret playbook that we’ve built over time from building our portfolio of brands.” These systems and strategies help make the Pearl West Group efficient and an integral part of the M&A process.
Strong Customer Relations and Vendor Accommodations
Kwan notes that having strong, amicable relationships with vendors can make all the difference in the acquisition process. While many companies view the brand as a figure on their bottom line, he highlights the need to make the business owner feel comfortable selling. “We want to make it as easy as possible for the business owners that want to sell. It can be challenging for any owner to have to sell their business, and we try to make it as frictionless as possible, and more importantly, we try to make it as pleasant and fun as possible. We are continually building that trust that we can optimize the brand more than the competition can so the seller can have a bigger earn-out.” In some cases, they also invite the sellers to join the team to help grow the brand.
To increase competitive advantage, companies that wish to become as successful as Pearl West Group must be clear about their target market, the benefits they provide, and how they differ from the competition.