Yelp Competitive Advantages 

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Yelp was established back in 2004 to be a platform people could use to get in touch with local businesses. The main idea was to have the app connect the people with local businesses. Any time a user was looking for a particular service, they would be able to find the closest one to them. 

Yelp Competitive Advantages 

When it comes to comparative advantage, Yelp stands out from its competition by innovating and staying consistent. Users aren’t just using the app to find one thing; they are also gaining accessibility to a wide range of services. They have a reason to keep using the app, thanks to a well-thought-out business model, that plays to their strengths, partners well with others, and is constantly looking to develop new content to keep users engaged. All reasons why Yelp has managed to stay ahead of the competition for this long. 

What are Competitive Advantages?

Competitive advantages are what separates a business from its competition. Every business strives to create such advantages to keep ahead. Its part of cultivating a brand and requires a business to be aware of what the competition is up to. Realizing how important it is can mean all the difference in coming across a successful business. They also translate into the employees, who are the front line of any business. How they interact with customers affects the success of the business.


Yelp is constantly trying to add to their app. They try to develop and develop new things thanks to their research and development departments. This means the app is always trying to come up with new things to keep users engaged. Long term, the goal is to improve customer experience and keep them coming back for more.

For instance, users have access to reviews for all the local businesses near them, but the app takes things a step further and encourages users to get in touch with the businesses if they feel it might be worth it. Then they can ask questions, or access their services online if possible. A feature like that is a great time saver and offers great accessibility since everything is easily found on one app. Users don’t have to bother accessing multiple apps, which is convenient.

A Well Thought Out Model 

Yelp put in the time and effort to come up with a well-thought-out and intelligent model for doing business. Rather than reach out to potential businesses, they offered incentives. Incentives are a great way to usher support for a project and to get things moving. Businesses were able to see the benefits of advertising and accessing customers through Yelp. As you can imagine, it has offered businesses a lot of benefits, because today it still maintains a consistent and loyal customer base. So, Yelp is a big opportunity for an uptick in sales, since businesses can increase their revenue through advertising alone.


Yelp has the added advantage of partnering with other apps like Google. Google Maps allows Yelp to access a wide user base. The app can reach out to a wider audience because Google helps people know where to look for certain businesses. It also shows specific businesses featured on Yelp, directing online traffic towards increasing customers and profits.

Considered a Business Directory  

Yelps is considered a business directory because they know where things are, and they offer convenience above all else. This is important in the modern world of technologically advanced users and it’s something that wasn’t thought of before then. 

Using Reviews to Their Advantage

Reviews whether positive or negative according to Yelp, are business opportunities. Depends on how you choose to use them. They offer a chance to improve, while others provide insight into what you are doing right to be able to retain customers and encourage them to remain loyal. You could argue negative reviews are the most important. Most people are on the lookout for negative reviews and if used right, they can be considered a valuable asset that points out some of the things a business needs to change to bring in more customers.

Playing to their Strengths 

Yelps stick to what they are good at. Even after years of operating, they still maintain a loyal user base. They sell ads to businesses and they gain revenue in return. It’s essentially a win-win situation for the parties involved. 


Yelp’s competitive advantages have offered the benefits that have been essential in keeping its customers loyal. They have been able to retain the trust of their users, they can encourage potential customers to focus on them rather than the competition, and they have been able to develop their brand in all aspects. Yelp capitalizes on reviews and increases its chances of creating competitive advantages. With access to a larger market, they have access to more users and they can offer more as a result.

Yelp Competitive Advantages 

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