A strategic advantage is something that a company has—be it a product, process, idea or combination thereof—that enables it to stand out amongst the competition and, potentially, stake claim on a market niche. In a time when competition is fierce, especially in the well-established West Coast cannabis markets, any tool you can use to distinguish yourself from your peers is going to help your bottom line.
Here is a breakdown of wide-ranging advantages that may help a company define itself and remain relevant in an ever-expanding marketplace.
1. Access to Exclusive Cultivars
Having quality cultivars that are desirable and exclusive to your company is a clear advantage. Look at it this way: There are certainly ubiquitous cultivars that customers demand that many companies must supply, but if a cultivation business or retailer has access to the same cultivars as every other company, little incentive exists–outside of quality, production costs and selling price–to patronize that particular business/brand over another.
Having exclusive and superior genetics, or, better yet, breeding them in-house and never releasing them as seed or clone to the public, potentially makes those genetics patentable. This can be a strategic advantage in and of itself: If patented, the cultivars can then legally be licensed to companies in non-competing geographic locations.
Alternatively, a cultivator may choose to license exclusive genetics from a particular breeding company, similar to how today’s traditional ornamental plant industry operates.
In a time when competition is fierce … any tool you can use to distinguish yourself from your peers is going to help your bottom line.
2. Proprietary Products
Beyond genetics, having proprietary products and/or securing intellectual property (IP) can be a game-changer for a company. Patenting cannabis-based formulations, for example, is another way of standing out. If a patent or other IP mechanism isn’t