I doubt many organisations think of credibility in terms of building a sustainable competitive advantage in the market place, but having credibility, having integrity, being identified as a trustworthy person or organization has propelled some brands into household names. And the evidence is around us if we pay attention.  The idea may sound obvious — but still, only a few of the brands take it seriously. And they are benefiting from it big time, creating unique avenues for competitive advantage. Let me share a few ways.

REFERRALS

Still the most affordable and authentic form of marketing, being credible has got a number of companies good businesses, especially high stakes projects like commercial real estates. Cappa & D’Alberto is a worthy example. They have used their credibility built over the years to complete projects. They include the iconic Civic Centre Towers, and the Wings Office Complex, Victoria Island.

ATTRACTING KEY RESOURCES

From people, partnerships, networks to technology, a credible entity can attract the best resources with less effort compared to others. People love to work in such environment, businesses love to work with such organisations. That is why a young graduate will pass on growing with a promising Startup and instead opt for a role at Unilever without batting an eyelid despite his/her chances of rising quicker in the former.

Credibility can enable companies charge a premium for a product or service that is not subject to market rate.

Credibility can also grow your business without all the shenanigans that deploys tactics that generates unsustainable growth. It is better to have credibility in the market place than for instance, teasing talent with outlandish emoluments to join the workf or discounting fees for services to be rendered. Finally, it’s a source of differentiation  strategy because not many people are doing it. Most times, people assume that once many are not doing it, it cannot be worth your while. That is simply not true.