How businesses can compete on non-pricing competitive advantages
Consumers in Ghana are witnessing something that seemed unimaginable just a year ago: petrol costs in the single digits. Petrol prices below GH¢10 per litre have sparked joy, relief, and heated public debate.
What has made the situation even more intriguing is not just the price cut, but how Oil Marketing Companies (OMCs) compete beyond pricing.
From GOIL's well-publicised free breakfast programmes to StarOil's emphasis on shade, convenience, and customer experience, the "fuel price beef" has evolved into a masterclass in non-pricing competitive advantage.
This occasion serves as a profound lesson for Ghana's business owners and SMEs.
Price cuts can get attention, but they are rarely sustainable on their own, especially in an economy with thin margins, variable expenses, and restricted access to capital.
Learning how to win customers without lowering prices is a smarter, longer-term strategy.
This article investigates how Ghanaian SMEs can effectively compete on non-price competitive advantages, utilising the present fuel price condition as a real-world case study.
Competing for customer experience
Superior customer experience is one of the most powerful non-price advantages that SMEs can leverage.
In Ghana, where word-of-mouth spreads rapidly both online and offline, how clients feel during and after a transaction is critical. Simple activities such as friendly staff, quick service, clear communication, and issue-solving can set a small business apart from its larger competitors.
Just like GOIL generated a pleasant emotional moment with a complimentary breakfast, SMEs can create memorable experiences through a warm greeting, a follow-up call, or a tiny, unexpected bonus. These moments foster loyalty while reducing price sensitivity.
Convenience and accessibility
StarOil's emphasis on shade at its stations demonstrates an often-overlooked benefit: convenience. Ghanaian consumers favour ease of access, lower wait times, flexible hours, and proximity.
Small and medium-sized enterprises (SMEs) can compete by being closer to clients, giving extended business hours, enabling mobile payments such as MoMo, and providing delivery and after-sales service.
Customers would typically prefer a service that saves them time and stress over a cheaper but less convenient alternative.
Brand trust and credibility
In uncertain economic times, trust becomes a currency. Consumers want to buy from companies that they trust will deliver on their promises.
Even when prices fluctuate, GOIL's longstanding reputation as a state-linked brand lends legitimacy to the company.
SMEs may foster trust by demonstrating consistency, openness, and ethical behaviour. Honouring warranties, being honest about pricing, and offering consistent quality all contribute to a reputation that price cuts cannot purchase. Over time, reputable firms can charge reasonable pricing without losing clients.
Product and service quality
Quality is an enduring competitive advantage.
In Ghana, many customers are willing to spend a little more for longevity, dependability, and peace of mind. SMEs should concentrate on enhancing product quality, packaging, and service levels. Quality decreases complaints and improves repeat business, whether through improved ingredients, stronger materials, or more expert service delivery.
The fuel price war demonstrates that, even when prices fall, buyers continue to prioritise fuel quality and engine performance.
Innovation and creativity
GOIL's free breakfast campaign is an example of clever marketing. It made an ordinary transaction into a talking topic. Innovation is not always synonymous with technology; it can also refer to a different way of thinking about client needs.
Small and medium-sized enterprises (SMEs) can innovate by combining products, establishing loyalty programmes, introducing flexible payment choices, and engaging customers through digital platforms.
Small, inventive ideas implemented consistently can provide significant differentiation in crowded marketplaces.
Customer relationships
Personal relationships are essential to the success of many SMEs in Ghana. Small businesses, unlike giant organisations, may know their clients by name, understand their preferences, and interact with them in person.
Supporting local activities, hiring local youngsters, and responding to community needs foster emotional loyalty. Customers are more likely to support a company with which they feel connected, even when prices fluctuate.
Speed and responsiveness
Another non-pricing advantage that SMEs might use is speed. Small firms can adjust more quickly than larger organisations.
They can respond swiftly to client feedback, alter products, and resolve issues without the need for bureaucracy. In a fast-paced market like Ghana's, responsiveness breeds confidence.
Customers feel appreciated when difficulties are resolved swiftly, making them less likely to switch based only on price.
Clear value communication
Non-pricing advantages are only effective if customers comprehend them.
SMEs must clearly articulate their value, including why they are unique, what clients get, and how the firm solves real-world challenges.
Small and medium-sized enterprises (SMEs) should use signage, social media, storytelling, and employee communication to emphasise their capabilities beyond price.
Conclusion
The latest fuel price reductions in Ghana have provided relief to consumers, but they have also highlighted something more fundamental: competition is no longer only about who is cheapest.
GOIL and StarOil have demonstrated that experience, inventiveness, trust, and customer service can be equally effective as price savings.
For Ghanaian SMEs, this is a critical time to reconsider strategy. Sustainable growth will not come from endless reductions, but from developing significant non-price competitive advantages.
SMEs can remain profitable, resilient, and relevant by focusing on customer experience, convenience, quality, trust, innovation, and relationships—no matter how fierce the price competition.
The writer is a Senior Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation) at the University of Professional Studies Accra
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