In business, companies may spend years developing products and building their brands, only for a competitor to emerge with a similar product at a lower price. Does that mean the original company is losing its place in the market? Not necessarily. The arrival of alternatives can reveal what customers truly value and help a company identify what sets it apart from its competitors.

When imitation becomes a way to attract new customers

Swatch offers an example of how similar products can be turned into a business opportunity. In 2022, the company partnered with Omega to launch the MoonSwatch collection, inspired by the iconic Omega Speedmaster but priced much lower.

The significance of this move went beyond offering a more affordable product: it gave a wider range of customers the chance to discover a design associated with a luxury brand. According to the original article, sales of the Omega Speedmaster Professional rose by more than 50% at Omega stores after the collection launched.

This experience reveals an important aspect of competitive advantage: products do not compete on price alone, but also on the value customers receive. While MoonSwatch offered a more affordable option, the original watch remained associated with Omega’s prestige and history in watchmaking. The price difference was therefore not just a way to attract customers; it helped meet the needs of different segments without offering identical value to each.

When product imitation becomes a brand opportunity

Athletic apparel company Lululemon took a different approach. In 2023, it launched a campaign allowing customers to exchange some counterfeit versions of its popular Align leggings for genuine Lululemon leggings.

Rather than simply competing with similar products, the company used the public’s interest in them to encourage customers to try its originals. According to the original article, about a thousand people took part in the campaign, and nearly half were new customers.

This highlights a competitive advantage different from the Swatch and Omega example. While the first example offered options at different price points while preserving the luxury brand’s distinction, Lululemon focused on turning customers’ interest in alternatives into an opportunity to showcase its original products and build relationships with them.

Together, the examples show that competitive advantage is not limited to a product’s features. It can also come from brand strength, a company’s ability to reach new customers, or the way it responds to changes in the market.

From similar products to different value

But what happens when products and services become so similar that it is difficult to tell them apart? In that case, competitive advantage becomes more closely tied to the overall experience a company provides.

In the Saudi market, competition between food delivery platforms such as Jahez and HungerStation shows how companies offering similar services can seek to stand out in different ways. A customer might choose a platform based on its restaurant selection, delivery fees, offers, ease of use, or delivery speed.

Although these factors may seem like minor details, they are elements a company can build its competitive advantage on. If a platform consistently delivers an experience customers prefer, it may be able to retain them even when a competitor offers lower prices or similar deals.

This example from Saudi Arabia connects to the two earlier examples: just as a lower-priced watch or a similar design is not enough, a delivery platform cannot rely on offering the same basic service. Success does not necessarily come from offering something a competitor doesn’t have, but from offering value that makes customers choose you over them.

What is difficult for competitors to copy?

This ability is known as competitive advantage: what enables a company to outperform its competitors, whether through product quality, brand strength, customer experience, or operational efficiency.

A competitor may be able to copy a product’s design or offer a similar service, but building and maintaining customer trust, developing a seamless experience, and establishing a strong reputation all take time and effort that cannot be shortcutted simply by launching a similar product.

So when a company faces competitors offering alternatives similar to its products, it can ask: What is the real reason customers choose us? Is it price, quality, trust, or experience? The answer can help identify where to invest and improve, rather than entering a price war that may reduce profits without ensuring customer loyalty.

However, it is important to distinguish competition from similar products or services from copying brands or products in ways that infringe intellectual property rights. Not every similarity is legitimate, and not every imitation benefits the original company.

Ultimately, the most important question may not be: How do we stop competitors from copying our products? It may be: If a competitor can offer a similar product or service, what value will make customers choose us?